Last week I posted the following –
“That being said the week ended with all the indices posting shooting stars so the short-term weakness could continue however so long as the higher timeframe remains up expect to see dip buyers in full force.”
What we saw this week were the North American indices opening up with a gap to the downside only to be met by a rush of buy orders as the buyers quickly overwhelmed the sellers then proceeded to rally for the rest of the week recouping all of last week’s losses and then some.
The markets are now trending strongly to the upside and by all appearances, the markets appear to be heading back to all-time highs with the QQQ’s just 5.5% away from those recent ATH’s.
In this trading environment, we’re seeing a real cognitive dissonance between what is happening with the real economy and the stock market.
The stock market has been on a major bull run even though most businesses in North America remain closed. Cynical investors may wonder why we even need businesses to re-open?
In this week’s video I discuss:
Now watch this week’s Weekly Outlook video to see the setups and levels we’ll be watching as well as the technical outlook for the VXX SPY QQQ IWM DIA EEM TSX TLT GLD MGC BTCUSD EEM and more for the week of Weekly Market Outlook For – May 11 – 15, 2020.