Is This Rally Evermore?

Last week a story went viral about a goth girl in London who rode the tube with a leashed Raven on her lap.

That image inspired many readers to write variations of Edgar Allen Poe’s The Raven.

My Homage to Poe:

“Once upon a market cheery,
While I trade so cavalieri,
Tis some analyst who feels leery,
Tapping on the Exchange door.
Quoth the Pundit -Nevermore!”

The above photo is our messenger Raven from earlier last week. Above his head is the passing train.

In Greek mythology, Ravens are associated with Apollo, the god of prophecy.

Is our Raven, with his wise expression, prophesying that a passing train implies this rally is nevermore or evermore?

Evidence for Evermore

A chart of US Weekly Leading Index Data shows a current level of 144.44 up from 135.85 (6.33%) one year ago.

The charts for the S&P 500, Nasdaq and the Dow show price consolidation marginally below all-time highs.

SPY is set up for a new runaway gap. Nasdaq had one on April 24th.

Transportation, a Modern Family essential to gauge economic sentiment, improved its phase to unconfirmed bullish. If confirms, IYT joins his already bullish siblings Biotechnology and Semiconductors.

Retail, although languishing in a Recovery phase, is languishing in a Recovery phase-not a Bearish one.

Optimism prevails in Europe that the French vote on Sunday results in a Macron win. The Euro ended the week in an Accumulation Phase. Many overseas ETFs, especially EWQ, roared higher.

Evidence for Nevermore

The Russell 2000 closed slightly red for the week. IWM needs to move away from the ever-so-close 50 daily moving average with gusto.

Interest rate yields, despite the hawkish tone, held onto its 50 DMA. Regional Banks, another Family sib, closed red and in a Warning Phase.

Although commodities recovered somewhat off the weekly lows on Friday, oil, gold, and agriculturals sharply declined.

The French could still defy the polls and vote in Le Pen.

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