Analysis of SPX, ITA, GE, AXON and DECK

Note: There will be no video as I am out of the office. Thank you for your understanding.

Despite the minor intra-day pullback from earlier highs, $SPX still managed to close at multi-day highs, and should fuel a further rise in prices up above 5750 to near 5800 into late next week before a possible peak. The day of 5/19 has significance in timing, given that this lies 90 calendar days from mid-February, which turned out to be an important peak, and based on Gann theory, projecting forward 90 and 180 days from important peaks can often have importance in timing. This also would allow $SPX to potentially record its first TD Combo "13 Countdown" exhaustion signal since the early April lows (which has more significance than a TD Sell Setup registered this past Monday). Overall, we believe the fact that six sectors experienced gains of more than 1% today is positive, and Industrials in particular outperformed, given the performance of $AXON, $GE, and many Airlines.  The bottom line is that a push higher into next week looks likely for US Equity Indices, and my technical target for $SPX lies between 5750-5800.

S&P 500 Index

One area that deserves some focus is the Aerospace and Defense stocks, as the $ITA ETF has just broken back out to new all-time highs last week, exceeding an area of resistance that had held since last Fall.  Stocks like $HWM and $AXON are favorites of mine within this sub-sector and are acting far better than $LMT, $NOC, and $GD. However, it's worth mentioning that former laggards like Boeing have come back to life, given this recent strength. The weekly chart of $ITA (Ishares US Aerospace & Defense ETF) is shown below. Upside resistance could materialize over the next 2 weeks near 170, but any late-month weakness would make $ITA attractive from a risk/reward perspective, technically for further strength into this fall.

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