Week 23 Market Roundup — Climatic Movement & Rotation in play plus sentiment indicators

We had witnessed V-shape rebound in NASDAQ 100 to break all time high last Friday while the Dow, S&P 500 and the Russell 2000 also rally in sync. The S&P 500's target at 3210 based on the axis line as mentioned in my daily market analysis video on Friday (before market open) was hit on Friday followed by a rejection and closed at 3186.

Despite NASDAQ hit all time high, it is actually a laggard among the 4 indices as the rotation from COVID-19 stocks to the economic re-opening stocks, is in play. This is further reflected in the two stocks in my watchlist below.

For S&P 500, the strong rally from the past week is considered as climatic run up with increasing supply while hitting the resistance. It is common to see a pause of the strong rally from here on to and observe how the market deal with the increased supply and the overhead resistance.

Vertical absorption with accelerating run up? Or a pause in the up trend with consolidation? The character (price spread, distance travel) and the volume signature is to be monitored closely.

As I mentioned in Week 22 market round up, late comer funds joined the bull run from 13–29 May. Will this rally end in a climatic run up to hit all time high? Or via an exhaustion of the demand and the momentum? All these are yet to show in the chart and we will need to pay close attention especially when the bears gave up and more bulls join the rally, which are…