Higher prices are likely for several reasons:
· The S&P touched the 38.2% retracement level of the 2020-2022 rally. When the level was reached intraday, the index immediately rallied
· The NASDAQ hit a 50% retracement level and rallied
· Tuesday is a projected turning point, a low, for the S&P and the NASDAQ
· Next week is May post-OPEX week which has a slightly upward bias.
The trading recommendations are derived from the NASDAQ 100 screen below. The first column is the seasonal rank for May. The second screen is that of the current relative strength. The third column is the combined rank.
S&P NASDAQ Screen
Hologic is top-ranked in the combined relative strength and seasonality screen. The dynamic weekly and monthly cycles, both 100% accurate in the last year, are rising. Price is likely to rally over $80.
Paychex is ranked fourth overall and number two in relative strength. The weekly cycle is rising, and the stock is oversold. The share price may exceed $125.