11 May 2021, 11:00
Yes, we know that it is the month of May but the stock market have not come down yet. As you can see in the chart below, the S&P 500 index just made a minor support at the blue line and posted a solid end to the week. In spite of the poor Non-Farm Payroll figures posted on Friday (266k jobs created vs 990k jobs expected), the stock market still defied expectations and rose up. Is it going back to “Bad News = Good News?”
However, a word of caution, we are still dangerously close to the green channel resistance line. The index has been repeatedly bouncing below the resistance line since Nov last year. And it seems like a matter of time the blue support line could be broken and send the index down to the black support line instead. We are still treading this stock market with an air of caution.