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Despite the minor intra-day pullback from earlier highs, ^SPX 0.68% 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 0.68% 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 14.13% , GE 2.18% , 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 0.68% lies between 5750-5800.
S&P 500 Index
One area that deserves some focus is the Aerospace and Defense stocks, as the ITA 1.95% 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 0.24% and AXON 14.13% are favorites of mine within this sub-sector and are acting far better than LMT 0.71% , NOC -0.34% , and GD 0.94% . However, it’s worth mentioning that former laggards like Boeing have come back to life, given this recent strength. The weekly chart of ITA 1.95% (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 1.95% attractive from a risk/reward perspective, technically for further strength into this fall.
US Aerospace & Defense Ishares ETF – ITA
AXON 14.13% has managed to recoup nearly all of its early-year weakness and should initially challenge former all-time highs near $716, which happened in mid-February, ahead of its steep drop under $500 into April. AXON 14.13% remains intermediate-term attractive technically, but is getting short-term overbought and nearing key levels which could possibly hold in mid-May. Note the presence of one DeMark-related exhaustion signal (13 countdown), and it could possibly generate another as of next week. However, this remains attractive, and I anticipate its intermediate-term technical resistance should occur near $805. Thus, any dips, if and when they occur, should make this even more attractive from a risk/reward perspective for an intermediate-term gain up to $805. Support lies at $594.
Axon Enterprise Inc – AXON
GE 2.18% moving back above March peaks at $214.21 signifies a new all-time high for this stock, which represents nearly 20% of the Ishares Aerospace & Defense ETF. As shown below, this move represents a breakout above both February and March peaks, which is a bullish development. Daily charts show that GE’s decline from February successfully held prior lows from December 2024, which kept the stock’s technical structure intact. Now the breakout back to new highs likely should help GE 2.18% carry higher to $226, near the highs of its intermediate-term trend channel resistance connecting highs going back since last spring. Thus, while the breakout in GE 2.18% should help this make progress in the days and weeks to come, it likely will face resistance near $226 into mid to late May before facing some consolidation.
GE Aerospace
Following 10 straight weeks of decline from late January, Deckers Outdoors managed to bottom right at its 200-week moving average(m.a.) in early April and has begun to turn back higher. (While I rarely suggest utilizing moving averages consistently as areas of support or resistance, in this instance, DECK 4.25% had a history of having bottomed at its 200-week m.a. both in 2020 and also in 2022, so the act of having stabilized into early April yet again near its 200-week m.a. took on greater importance as a possible area of support.) As of today, 5/8/25, DECK 4.25% has pushed higher to the highest levels since early March, and its recent acceleration is close to helping weekly MACD make a positive crossover. I expect a test of the prior lows from last fall, just above 135, and its first 38.2% Fibonacci retracement level lies just above $143, making the area from 135-143 important. Overall, it’s important to see the degree of comeback that DECK 4.25% has made lately, and I expect this to rise to continue in the months ahead.
Deckers Outdoor Corporation
