The S&P 500 ($INX) remains in a major (long-term) 5-wave uptrend, posting a new 4-month high during May. Theoretical Positions: Long from the October 2022 close of 3,871.98 with a stop below the March 2023 low of 3,808.86.
The Dow Jones Industrial Average ($DOWI) also remains in a major 5-wave uptrend, though the Wave 1 high still looks to be the December mark of 34,712.28. Theoretical Positions: Long from at least the October 2022 settlement of 32,732.95 if not the breakout of the September high at 32,504.04.
The Nasdaq ($NASX) extended its major uptrend to a high of 13,153.23 during May. The next upside target is near 14,192.86. Theoretical Positions: Long from the October 2022 close of 10,988.15 with a stop below the March 2023 low of 10,982.80.
The US 10-year T-note (ZN) remains in a major 5-wave uptrend. Theoretical Positions: It’s possible longs might’ve been established at the November 2022 close of 113-070 based on monthly stochastics and a possible 2-month reversal. Additional longs could’ve been established when the ZN took out the Wave 1 high of 116-080. If so, the average long would be roughly 114.575. Stops would be placed below the March low of 109.315.
Gold (Cash Index): The cash index completed a bearish key reversal during May, indicating the major trend has turned down again. Theoretical Positions: Traders could liquidate longs established at the November 2022 close of $1,768.09 near the May settlement of $1,962.56 (gain of $194.47). Short positions could be established at the same price, with a buy stop move the May high of $2,059.31 (risk of $96.75). The initial downside target is the 4-month low of $1,807.12 (February 2023).
