• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Thrilling Week for the Stock Market: Dow Jones Makes Strong Close Above 40,000 for the First Time
Stock

Thrilling Week for the Stock Market: Dow Jones Makes Strong Close Above 40,000 for the First Time

by May 17, 2024
by May 17, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

It made it! The Dow Jones Industrial Average ($INDU) closed above 40,000 for the first time, another record close for the index. What an exciting week!

And most of that excitement came in the last few minutes of the trading week. We’ll take it. After a few weeks of lethargic activity in the stock market, the optimism is back.

Get the live chart.

CHART 1. DOW JONES INDUSTRIAL AVERAGE CLOSES ABOVE 40,000. Investors will be looking for the upside momentum to continue next week.Chart source: StockCharts.com. For educational purposes.

A Recap of Stock Market Activity

The stock market regained its mojo on Wednesday, when inflation data came in cooler than expected. It then took a bit of a breather on Thursday and, for the most part, on Friday, but the last few minutes of the trading day did reinject some optimism, which is unusual for end-of-week trading. The stock market got what it wanted, reacted, and then decided to get a head start on the weekend.

Next week, investors will be focused on looking for upside follow-through. Now that interest rate hikes are off the table and it looks like cuts will happen sometime this year, investors have renewed their confidence in the stock market.

Get the live chart here.

The CBOE Volatility Index ($VIX) continues to be low, further confirming that investors are complacent. $VIX is close to its December 2023 lows, when investors’ confidence in equities reignited following the October 2023 lows.

CHART 2. DAILY CHART OF THE VIX. The VIX is close to its December lows, coinciding with the time investors renewed their confidence after the pullback in October.Chart source: StockCharts.com. For educational purposes.

While equities have trended toward the upside, commodities have also broken out. The daily chart of the Invesco DB Commodity Tracking Index Fund (DBC) shows the index has broken out above a downward trending channel, suggesting that the pullback in commodities may be behind us.

Follow the live chart.

Commodities are inflation-sensitive, and, given that inflation may be cooling, commodities may be breaking out of the flag pattern you see in the chart below.

CHART 3. COMMODITIES BREAKING OUT. Commodities are also showing strength as they break out from a flag pattern.Chart source: StockCharts.com. For educational purposes.

Get your live chart here.

Copper and silver prices soared on Friday, and gold looks like it’s on its way to revisit its all-time highs. Silver saw a significant breakout on Friday. It’s worth looking at the chart of iShares Silver Trust ETF (SLV) to get a sense of the breakout magnitude.

CHART 4. SILVER SEES SIGNIFICANT BREAKOUT. The iShares Silver Trust ETF (SLV) has broken above its 2021 high. How much higher can it go? The next resistance is at around $35.Chart source: StockCharts.com. For educational purposes.

SLV has broken out above its February 2021 high. The price action on Friday suggests that price will continue higher next week. The next resistance level could be the 2012 highs, which is around $35, so there’s room for upside movement in SLV. If you want to get in on the silver rally, opening a position in SLV may be something to consider. However, be sure to identify your stop losses before entering a trade. Although SLV seems poised to move higher, anything can reverse the move. Make sure you’re comfortable with the risk/reward ratios.

SLV is well above its 20-week exponential moving average, and the Percentage Price Oscillator (PPO) shows that momentum is rising. If the trend continues, then SLV could see a strong rally. It’s been a while since silver got some love.

And There’s NVIDIA

Next week should be interesting. The highlight is NVIDIA’s earnings—the company reports on Wednesday after the close. Analysts estimate earnings to come in at $5.57 and revenues at $24.57 billion. If NVIDIA (NVDA) beats, it could be a big catalyst for the markets to move higher. But the worry would be if NVDA misses expectations. A downside move would be of a much greater magnitude than an upside move. NVDA has had a significant impact on the stock market’s performance, so just about every investor will be tuned in to the news after the close on Wednesday.

End-of-Week Wrap-Up

S&P 500 closes up 0.12% at 5,303.27, Dow Jones Industrial Average up 0.34% at 40,003.59; Nasdaq Composite down 0.07% at 16,685.97$VIX down 3.46% at 11.99Best performing sector for the week: TechnologyWorst performing sector for the week: IndustrialsTop 5 Large Cap SCTR stocks: MicroStrategy Inc. (MSTR); Vistra Energy Corp. (VST); Super Micro Computer, Inc. (SMCI); Robinhood Markets (HOOD); Vertiv Holdings (VRT)

On the Radar Next Week

 Earnings from Nvidia (NVDA)Fed speechesApril Existing Home SalesNew Home SalesMay Michigan Consumer Sentiment

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • The Ord Oracle June 19, 2023
  • The Ord Oracle February 15, 2023
  • The Biggest Problem with Technical Analysis? Part 2: Trend Following!
  • Master The Most Underutilized Options Income Strategy: Cash-Secured Puts
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Sen Durbin demands Justice Alito recuse from Trump cases after flying upside-down US flag
next post
TOP 10 Stock Picks for May 2024

You may also like

Intraday Trading Entry and Exit Strategies

April 18, 2024

Bitcoin Blasts ABOVE 70K!

May 21, 2024

NVDA Stock Split Launches S&P 500 Higher

June 10, 2024

DP Trading Room: Can Tech’s Bullish Bias Hold?

September 12, 2023

S&P 500 Now in Weakest Seasonal Period… Or Is It?

May 17, 2025

GNG TV: “All About That Base(ing)” New Go Trends

July 14, 2023

Clear Split in NY FANG+ Universe Offers Pair Trading Universe

March 8, 2024

Week Ahead: Ranged Movement Expected In The Truncated Week; These...

January 21, 2023

The Best Form of MACD Divergence

March 30, 2023

The Stock Market In 3 Charts: Market Breadth, Bonds, Sentiment

November 23, 2023

Intraday Trading Entry and Exit Strategies

April 18, 2024

Bitcoin Blasts ABOVE 70K!

May 21, 2024

NVDA Stock Split Launches S&P 500 Higher

June 10, 2024

DP Trading Room: Can Tech’s Bullish Bias Hold?

September 12, 2023

S&P 500 Now in Weakest Seasonal Period… Or Is It?

May 17, 2025

GNG TV: “All About That Base(ing)” New Go Trends

July 14, 2023

Clear Split in NY FANG+ Universe Offers Pair Trading Universe

March 8, 2024

Week Ahead: Ranged Movement Expected In The Truncated Week; These...

January 21, 2023

The Best Form of MACD Divergence

March 30, 2023

The Stock Market In 3 Charts: Market Breadth, Bonds, Sentiment

November 23, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • S&P 500, Bitcoin & XLK: What the Charts Are Saying Now

      May 20, 2025
    • Levi Strauss to sell Dockers to brand management firm Authentic Brands Group

      May 20, 2025
    • Tariffs or not, a Chinese baby products company is ramping up its U.S. expansion

      May 20, 2025
    • Not All Price Gaps Are the Same! Here’s How to Trade Them

      May 20, 2025
    • Earnings Watch: Smart Setups in HD, PANW, and BJ

      May 19, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,683 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,386 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,367 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,342 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,226 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,087)
    • Investing (538)
    • Stock (2,557)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • S&P 500, Bitcoin & XLK: What the Charts Are Saying...

      May 20, 2025
    • Levi Strauss to sell Dockers to brand management firm Authentic...

      May 20, 2025
    • Tariffs or not, a Chinese baby products company is ramping...

      May 20, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,087)
    • Investing (538)
    • Stock (2,557)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    MEM TV: Risk-Off Signals Possible Downside...

    March 16, 2024

    Rules-Based Money Management – Part 1:...

    April 18, 2024

    DP Trading Room: AI Bubble Deflating

    September 9, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here