Thurs 22nd May 11.15 am

Is the big cap US stock Priceline (PCLN) trying to tell us something? This stock has just made a ‘Bull Flag’ breakout. As per usual, ‘one swallow does not a summer make’ BUT a weekly close up and out of this flag pattern would be a rather bullish signal:

Looking back over the major US stock indices reveals that many are still range bound within various trading patterns BUT the NASDAQ looks like it is also trying for a ‘Bull Flag’ break. As with PCLN, I will be looking to see if this bullish breakout holds for the weekly candle:

NASDAQ:

S&P500: this is still trading within the bullish ascending triangle pattern for now:

INDU: this is also still trading within the bullish ascending triangle pattern for now:

Russell 2000: is still ranging within the Flag/H&S technical pattern:

VIX: no breakout here yet:

USO: there has been a breakout on the triangle pattern for USO though and this bear trend line had been in play for the last 3 years; since April 2011. A hold above this tend line for the weekly candle would be a very bullish signal too:

USO weekly: showing triangle pattern:

USO daily: showing triangle break:

Other market metrics support bullish continuation for now:

IYT: transport ETF: remains in an uptrend:

FDX: Another ‘Bull Flag’ forming here too?

UPS: also still in an uptrend:

EEM: no warning signs on the emerging markets ETF yet:

TSLA: this might be worth watching for any potential breakout too:

Summary: The NASDAQ and PCLN have both made ‘Bull Flag’ breaks on their daily charts but traders need to see if these breakouts hold for the weekly candle close. These may be an indication of future trends for the remaining US indices that, so far, continue to be range bound within their various technical trading patterns. Trend line breaks here will, hopefully, help to identify any breakout moves and new trend direction.