{"id":5156,"date":"2024-06-03T00:02:23","date_gmt":"2024-06-03T00:02:23","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/03\/one-major-concern-about-fridays-rally\/"},"modified":"2024-06-03T00:02:23","modified_gmt":"2024-06-03T00:02:23","slug":"one-major-concern-about-fridays-rally","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/06\/03\/one-major-concern-about-fridays-rally\/","title":{"rendered":"One MAJOR Concern About Friday\u2019s Rally"},"content":{"rendered":"
\n

I\u2019m all for a big rally with a hammer printing on the long-term weekly chart, especially at 20-week EMA support. That\u2019s exactly what happened on Friday on the Dow Jones Industrial Average ($INDU). This index of conglomerates had been underperforming other areas of the stock market badly and, on Friday, was on the verge of printing its lowest weekly close since back in January. The April low weekly close was 37983.24 and Friday\u2019s low was 38000.96. So after posting an all-time high weekly (and daily) close at 40003.59 just two weeks ago, the Dow Jones was on the verge of moving to a close that wasn\u2019t too far from a 2024 low weekly close. <\/p>\n

Then the buying happened:<\/p>\n

During secular bull market advances, it\u2019s important to hold onto 20-week EMA support and the Dow did just that. The Dow climbed over 300 points in the last 20 minutes. It was a fantastic finish.<\/p>\n

<\/a><\/p>\n

So what\u2019s not to like about it? What\u2019s the opposite of a \u201csilver lining?\u201d Maybe \u201cevery rose has its thorn?\u201d<\/p>\n

Well, here\u2019s the thorn:<\/p>\n<\/p>\n

That bottom panel shows that, while the overall market made a HUGE reversal, with the S&P 500 climbing all the way back to where it was early in the week, the XLK lagged WAY behind on a relative basis. Rotation is a part of the game and sometimes, even during solid bull markets, we\u2019ll see money rotate away from technology. But let\u2019s keep one thing in mind. Technology (XLK) represents 29.2% of the S&P 500. Technology represents 49.29% of the NASDAQ 100 ($NDX), while representing just 18.6% of the Dow Jones.<\/p>\n

My point here is that if we\u2019re witnessing rotation away from technology, even for just a brief period of time, we should expect to see outperformance of areas without as much technology exposure \u2013 like the Dow Jones. And after seeing that Dow reversal off its 20-week EMA, I believe we\u2019ll see the Dow Jones outperform during the month of June.<\/p>\n

Join our EB Digest (EBD) newsletter today to enjoy other thought-provoking charts published 3x per week. Find out the sector that LOVES the month of June as I\u2019ll be discussing that in Monday\u2019s EBD. CLICK HERE<\/a> to start your FREE subscription today!<\/p>\n

Happy trading!<\/p>\n

Tom<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

I\u2019m all for a big rally with a hammer printing on the long-term weekly chart, especially at 20-week EMA support. That\u2019s exactly what happened on Friday on the Dow Jones Industrial Average ($INDU). This index of conglomerates had been underperforming other areas of the stock market badly and, on Friday, was on the verge of […]<\/p>\n","protected":false},"author":0,"featured_media":5157,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5156","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5156","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5156"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5156\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5157"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5156"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5156"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5156"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}