Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

One MAJOR Concern About Friday’s Rally

by June 3, 2024
June 3, 2024
One MAJOR Concern About Friday’s Rally

I’m all for a big rally with a hammer printing on the long-term weekly chart, especially at 20-week EMA support. That’s exactly what happened on Friday on the Dow Jones Industrial Average ($INDU). This index of conglomerates had been underperforming other areas of the stock market badly and, on Friday, was on the verge of printing its lowest weekly close since back in January. The April low weekly close was 37983.24 and Friday’s low was 38000.96. So after posting an all-time high weekly (and daily) close at 40003.59 just two weeks ago, the Dow Jones was on the verge of moving to a close that wasn’t too far from a 2024 low weekly close.

Then the buying happened:

During secular bull market advances, it’s important to hold onto 20-week EMA support and the Dow did just that. The Dow climbed over 300 points in the last 20 minutes. It was a fantastic finish.

So what’s not to like about it? What’s the opposite of a “silver lining?” Maybe “every rose has its thorn?”

Well, here’s the thorn:

That bottom panel shows that, while the overall market made a HUGE reversal, with the S&P 500 climbing all the way back to where it was early in the week, the XLK lagged WAY behind on a relative basis. Rotation is a part of the game and sometimes, even during solid bull markets, we’ll see money rotate away from technology. But let’s keep one thing in mind. Technology (XLK) represents 29.2% of the S&P 500. Technology represents 49.29% of the NASDAQ 100 ($NDX), while representing just 18.6% of the Dow Jones.

My point here is that if we’re witnessing rotation away from technology, even for just a brief period of time, we should expect to see outperformance of areas without as much technology exposure – like the Dow Jones. And after seeing that Dow reversal off its 20-week EMA, I believe we’ll see the Dow Jones outperform during the month of June.

Join our EB Digest (EBD) newsletter today to enjoy other thought-provoking charts published 3x per week. Find out the sector that LOVES the month of June as I’ll be discussing that in Monday’s EBD. CLICK HERE to start your FREE subscription today!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Insiders predict this possible Trump VP pick poses ‘existential threat’ to key area of Biden support
next post
Ben Finegold: Uranium’s New Paradigm — Market Dynamics and How to Invest

Related Posts

S&P 500 Breaking Out Again: What This Means...

August 31, 2025

S&P 500 Breaking Out Again: What This Means...

August 27, 2025

The Halftime Show: Defense and Value on the...

July 25, 2023

The Best Five Sectors, #21

June 3, 2025

Bearish Divergence Suggests Caution For S&P 500

June 14, 2025

The Wisdom of Jesse Livermore, Part 11

July 28, 2023

Chesapeake Energy: A Stock That Could Pump Much...

September 12, 2023

S&P 500 Breaking Out Again: What This Means...

September 21, 2025

Which Cyber Security ETF is the Strongest?

September 28, 2023

Three Industrial Stocks With Room to Run!

March 27, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Presenting on Emerging Growth Conference 87 Day 2 on October 23; Register to live stream

    • CHARBONE annonce la reception des principales composantes sur le site de Sorel-Tracy et le lancement des travaux civils

    • CHARBONE Announces the Reception of the Main Components at the Sorel-Tracy Site and the Launch of Civil Works

    • Allied Critical Metals Drills 10.0 Metres of 1.11% Tungstenat Borralha

    • Canadian Investment Regulatory Organization Trade Resumption – WHY

    Categories

    • Business (1,401)
    • Investing (3,057)
    • Politics (3,699)
    • Stocks (1,827)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved