The market spent the week consolidating the prior move off the early May lows. After a Monday gap-up attributable to a Presidential Tweet, the market pulled in and spent the remaining four days of the week in a tight sideways range. The S&P 500 Index, along with the rest of the market, traded in a tight range on Friday as volume expanded, thanks to options expiration.
The NASDAQ Composite Index looks roughly the same, holding along its 10-dma on Friday on roughly even volume, despite options expiration. So far, I don’t see anything abnormal here, since many leading names got extended coming into the week, as I noted in my report of last weekend, and were entitled to some rest. Same thing goes for the indexes, which have rallied so far in May and were also somewhat extended on the upside by the time we gapped up on Monday morning.
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