Investors - Sell in May and Go Away?

sabretoothtigger

Isnt there a kind of bullrun where they drive the herd over the cliff in order to slaughter them all. Which is kinda cruel but effective and also it fits my idea of how free markets can whipsaw opposite to government control but anyway



I'm posting this as the phrase cropped up in something I was reading, it does seem optimistic even in saying a pullback may happen as would fit

Momentum is the name of the game for now and right now most momentum indicators are still moving higher (NYSE Summation index and Cumulative advance/decline line on chart above).

Yesterday the SPX jumped through the 875 resistance and for now the 875 area made provide support. If the Momentum indicators don’t turn down for near term then the market may head to the January high near 940 level.

We have draw a line from the 940 range which could turn into a Neckline of a Head and Shoulders bottom where the left shoulder came back at the November 08 lows. If the SPX tests the January highs on higher volume then that would be a very bullish development and give credit to the Head and Shoulders bottom pattern.

A pull back still would be expect and could pull back down where the Left Shoulder bottom which is near 740 range. There is an old adage that says “Sell in May and Go away” and may hold true this year also.

We will watch the Bullish Percent index, Summation index, Cumulative Advance/decline line and MACD closely for the next clues for a downturn in the market.

http://www.hamzeianalytics.net/




http://www.trade2win.com/traderpedia/Head_and_shoulders


http://stockcharts.com/charts/gallery.html?$NYAD