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Can the Russell 2000 Sinko De Market?

NEW YORK (TheStreet) - Despite a positive market reaction to the April employment report on Friday, no new highs were set, and despite all the bullish calls from Wall Street, the major averages show only minor gains or losses for the year to date.

Dow Industrial Average (15512.89, down 0.4% YTD) set its all-time intraday high at 16631.63 on April 4, the day that the March employment data was released. That was a "key reversal" day and the Dow slumped to an intraday low at 16015.32 on April 11. Last Friday is a potential "key reversal" given lower closes today and tomorrow and its daily chart shows an overbought condition.

The weekly chart is positive with its five-week modified moving average at 16318. Quarterly and semiannual pivots are 16462 and 16245 with semiannual and monthly risky levels at 16860 and 17407. Annual value levels lag at 14835 and 13467.

The S&P 500 (1881.14, up 1.8% YTD) set its all-time intraday high at 1897.28 on April 4, which was also a "key reversal" and the S&P slumped to an intraday low at 1814.36 on April 11. Last Friday was not a "key reversal" for the S&P but the daily chart is overbought.

The weekly chart is positive with its five-week MMA at 1856.5. Our quarterly pivot is 1853.5 with a monthly risky level at 2006.7. Semiannual pivots are 1797.3 and 1764.4 and annual value levels lag at 1539.1 and 1442.1.

Dow Transportation Average (7698.84, up 4% YTD) set its all-time intraday high at 7774.58 on April 24 and nearly tested that level again on May 2. The daily chart is neutral with flat momentum.

The weekly chart is positive with its five-week MMA at 7535. Quarterly and semiannual pivots are 7407, 7376 and 7245 with a monthly risky level at 8361. Annual value levels lag at 6249 and 5935.

The Nasdaq (4123.89, down 1.3% YTD) set its multiyear intraday high at 4371.71 on March 7 and traded as low as 3946 on April 15 staying above its semiannual value levels at 3930 and 3920. Many of the former momentum stocks are in the Nasdaq and had their bubbles popped like a pinata. We were one of the first to cover this story in Pop! Goes the Momentum Bubble posted on March 28.

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