Still room for a week or two of profit
Still room for a week or two of profit
Earnings helped boost the market higher as well. Companies like Tesla (TSLA) surged 10%, which helped lift the other tech stocks. Chevron (CVX) rose nearly 5% after earnings and the announcement that it would raise the annual dividend and spend $75 million in stock buybacks.
Where does that put the broader market? Here’s a chart of the Dow Jones Industrials (via ticker DIA). I’ve also included the Williams%R indicator. I’ve written about it before - it’s a momentum indicator that moves between 0 and -100. A reading above -20 is overbought and we’re sitting at -29 right now, which means we could have more upside room to go.
You can also see on the chart that an overbought reading on Williams%R doesn’t mean the trend is over. But it gives you a warning of a potential reversal. The two areas in the middle of the chart had an extended overbought reading as the market continued higher. That could happen again, but we’re getting close to a long-term trend line that we’ve had a hard time crossing in the last year. Will we get a breakout here? Anything is possible, especially with a Fed meeting next week.
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