The stock market basically stays flat in May. Dow Jones Industrial Index stays at around 16,500 to 16,600 level. It is matter of time whether this is consolidation or distribution. When the Dow Jones Industrial Index breaks above 16,700, then it will continue to rise to another new high. If it wants to break below 16,000, then the market up trend for this recent two years will be destroyed. The possibility of breaking down the support level is quite high; therefore, my suggestion would be get the profit now and wait for the signal - up or down.
Let's review the major headlines in this May.
Here are the major headlines: Apple to buy Beats Electronics headphones and speakers in billion-dollar deal; China consumer inflation slows and policy easing expected; Draghi sets clock ticking for June stimulus by ECB; Draghi's warnings deflate euro but dollar's rise seen limited; USPS loss hits $1.9 billion but package volume up; RadioShack scales back planned store closings; US job openings slip in March after strong gain; IBM chief says better times lie ahead; AT&T in talks to buy DirecTV for about $50 billion; Macy's profit rises 3% despite declining sales; Cisco surges on earnings beat and eyes growth; Sony views deeper restructuring and warns of another loss this year; JC Penney sales increase offers sign of hope; GM fined $35 million in ignition-switch safety case; Pinterest valuation soars to $5 billion on new funding; Credit Suisse pleads guilty in $2.6 billion settlements; GoPro files IPO prospectus; Fed minutes could spark more market volatility; Google finally overtakes Apple to become the world's most valuable brand; Lenovo's posts record profit on smartphone sales; HSBC China Manufacturing PMI rises; Tiffany profit tops estimates as higher prices boost revenue; HP to eliminate another 11000 to 16000 jobs.
It sounds to me there are more negative news rather than positive news.