As mentioned in Monday’s report, the recent bottoming of the
[short-term] cycle should temporarily take some of the recent selling pressure
off the market, and so far it has done that.
The fact that this is a pre-holiday week has resulted in the type of
low-volume, buoyant environment for equities that is typical in the days
preceding Memorial Day.
The Dow Jones
Transportation Average (DJTA) is just below its all-time high and is reflecting
a healthy trend for the transportation sector.
For that matter, the Dow Jones Industrial Average (DJIA) is less than
200 points below its all-time high (although it’s below the 15-day moving
average)….
[Excerpted from the May 21 issue of Momentum
Strategies Report]
