In this edition:
- With the adage “sell in May and go away” likely to be making headlines in the coming week, we discuss why S&P 4194 and 4118 are important trading levels.
- Last week’s bounce in the Russell 2000 Small-cap index was an encouraging near-term improvement. We discuss why 2171 is now a key level for the small-cap index and highlight that relative performance versus the S&P 500 is beginning to reverse the March-April downtrend.
- Investors were well rewarded for investments in high momentum growth ETFs in 2020 followed by -20-35% declines in February-April. We review three ETFs (CLOU, GNOM and TAN) as proxies for the higher momentum growth themes, noting they are beginning to bottom at key support levels at their rising 200-day moving averages.