By: John Darsie of T3live
US markets made another push higher again Thursday as they try to rally at the end of a weak month of May, all despite more weak data points with higher than expected jobless claims and a downward GDP revision. The stuttering recovery now has commentators talking QE3. Today’s push puts the S&P right at its 50-day moving average, and it will take a strong day tomorrow to give bulls confidence of a break of the recent downtrend. In summer trading, which unofficially kicks off after Memorial Day weekend, it is more difficult to chase extreme moves and get follow through, but we remain oversold and are ripe for a least a push into the downtrend line.
Chipotle Mexican Grill, Inc. (CMG) took its turn among leading momentum stocks breaking out today, pushing 2.4% higher to all-time highs. Another of our go-to momentum stocks, Lululemon Athletica, Inc. (LULU) broke to the downside out of an ascending triangle patter following a downgrade, and finished the day down 6%.
Cool! That’s a clever way of looikng at it!