The Gilmo Report

May 6, 2018

May 6, 2018

News that iconic value investor Warren Buffett bought 75 million more shares of Apple (AAPL) sent the stock and the market pushing higher on Friday. This came on the heels of a big shakeout and reversal as the S&P 500 Index broke below its 200-dma, bringing on the consternation of market pundits who see the line as a critical level of support, but then reversed back to the upside to regain its 200-dma.

Today, the index pushed higher clearing its 10-dma and 20-dema but remaining well below its 50-dma. Volume was lighter. Technically, the index remains in a big, choppy range extending back to January, but things are starting to tighten up as all the moving averages start to converge. So, we might expect some sort of more pronounced resolution sooner rather than later.

 

GR050818-$SPX

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