May 5, 2000.Situation negative. The Dow Jones Industrial Average closed at 10,578. The Dow moved above all short-term chart resistance between 10,537 and 10,576 quickly but unconvincingly today, ending the decline which began last week. The Dow tested the 10,195 level only three weeks ago, which is the 20-month exponential moving average. Bouncing convincingly off that low, the Dow ran up 1,000 points to 11,200 just seven trading days ago, only to sell off sharply in the past week on inflation data and Microsoft's government mess. Today, the Dow closed overbought on the short-term charts. That the Dow only sold down to 10,400 yesterday is evidence of the power of the media as reports of a buy recommendation from a noted analyst circulated. The fundamentals look bad and seem to be getting worse. Yet the Dow is staying in its current trading range between 10,200 and 11,300. The Dow may not be ready to stay above 11,000 yet until the Federal Reserve lowers interest rates, but with corporate profits running well above earlier expectations, the Dow can make no progress to the downside either.
05-minute Dow chart
 20-period moving average 10,556
05-period moving average 10,567
MACD 4.28/1.54 positive
RSI 49.66 neutral
STOCHASTICS 77.64/62.62% positive
15-minute Dow chart
 20-period moving average 10,544
05-period moving average 10,565
MACD 17.80/18.91 negative
RSI 52.23 neutral
STOCHASTICS 66.43/62.38% positive
30-minute Dow chart
 20-period moving average 10,528
05-period moving average 10,557
MACD 8.15/-4.66 positive
RSI 71.62 positive
STOCHASTICS 87.15/84.67% positive
60-minute Dow chart
 20-period moving average 10,553
05-period moving average 10,537
MACD -36.18/-60.88 positive
RSI 59.87 neutral
STOCHASTICS 84.24/72.20% positive
Daily Dow chart
 20-period moving average 10,755
05-period moving average 10,576
MACD -58.26/-3.01 negative
RSI 43.16 neutral
STOCHASTICS 29.99/40.42% negative
Weekly Dow chart
 20-period moving average 10,701
05-period moving average 10,700
MACD -38.01/-31.64 negative
RSI 44.53 neutral
STOCHASTICS 53.51/50.92% positive
Monthly Dow chart
 20-period moving average 10,195
05-period moving average 10,536
MACD 687.26/802.05 negative
RSI 61.00 neutral
STOCHASTICS 53.27/63.19% negative

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