The S&P 500 ($INX) extended its major (long-term) uptrend to a high of 5,341.88 during May before posting a new all-time high monthly close of 5,277.51. Theoretical Positions: Long from the October 2022 close of 3,871.98.
The Dow Jones Industrial Average ($DOWI) extended its major uptrend to a high of 40,077.40 during May before closing the month at 38,688.32, its third highest monthly close on record. 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 17,032.66 during May before posting an all-time high monthly close of 16,735.02. Theoretical Positions: Long from the October 2022 close of 10,988.15.
The US 10-year T-note (ZN) remains in a major uptrend with the April low of 107-040 a test of the downside target of 107-016. The latter is the 78.6% retracement level of the Wave 1 rally from 105-105 (October 2023) through the high of 113-120 (December 2023). Wave 2 selloffs tend to see a deep retracement of Wave 1, often reaching near 80%. Theoretical Positions: New longs might’ve been established near the November 2023 close of 109-150. Additional positions could’ve been established near the April close of 107-140, creating an average position of 108-145. Sell stops would be placed below the October 2023 low of 105-105.
