The Gilmo Report

May 27, 2018

May 26, 2018

After a bullish recovery on Wednesday following the release of the latest Fed meeting minutes, the major indexes are all back to the top of their current two-week price ranges. The lone exception, of course, remains the small-cap Russell 2000. The main question for the market to answer currently is whether the other larger-cap indexes will soon join the Russell in new-high price ground.

That question doesn’t have to be answered immediately, since the non-Russell 2000 indexes could just continue to move tight sideways. In this spirit, the NASDAQ Composite Index spent Friday, just ahead of the three-day Memorial Day weekend, churning around in a tight range at the highs of its current two-week price range. Volume was understandably light.

Note that the action over the past two weeks has been relatively tight since the general market began gyrating in wide swings after the late January peak. But this tight sideways action could continue for a period of time before it resolves one way or another. Otherwise, the NASDAQ remains in a tight two-week range.

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