May has not been the kindest of months for equities as the Dow now sits -4.68% lower MTD. Several of the big blue chips had been in strong uptrends all year headed into May, but have since rolled over.  For some, the breakdowns are more individual stories such as Boeing’s (BA) 737 Max headaches or DowDuPont’s (DWDP) recent weak quarter following multiple spinoffs, but they are also a factor of broader trends of concerns around global trade and growth.  For example, Caterpillar (CAT) which has acted as a bellwether for global trade given its high exposure to China has been hit particularly hard as tensions have ramped back up. May declines have broken CAT’s uptrend in addition to having sent it below its moving averages.  Its peers are seeing the same patterns with broken uptrends from the likes of Apple (AAPL), Cisco (CSCO), Intel (INTC), 3M (MMM), and Exxon Mobil (XOM).  In the case of DWDP and MMM, this month’s sharp declines have brought them around 52-week lows.  Other Dow stocks like McDonalds (MCD) and Procter and Gamble (PG) have held up far better and are still pretty much in their uptrends, but in the past few sessions they’ve begun to test their uptrend lines and 50-DMAs as well.  Start a two-week free trial to Bespoke Institutional to access our Chart Scanner tool and much more.

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