Market Outlook for the Week of July 14th = Minor Correction in Progress
- Short-term (20 DMA):
- Almost all the indexes ended the week above their 20-day moving averages (except for the Russell 2000). Per IBD, the general market uptrend is under selling pressure.
- Intermediate (50 DMA):
- Market averages remain above their 50-day moving averages, but Elliot Wave indicates that the recent uptrend is probably over, leaving one more run at new highs before a major correction.
- Long-term (200 DMA):
- Market averages remain extended from their 200 day moving averages, and the bull market continues per Elliot Wave.
Elliott Wave Analysis from Elliott Wave Update by Tony Caldaro
The market opened the week on a gap down, one of several, as it started to correct from last week’s SPX 1986 all time high. After hitting SPX 1953 on Thursday the market tried to rebound into Friday’s close. For the week the SPX/DOW were -0.80%, the NDX/NAZ were -1.05%, and the DJ World index was down 1.55%. Economic reports were sparse on this first full trading week of the quarter. On the uptick: consumer credit, wholesale inventories, the WLEI, a Treasury surplus, and weekly jobless claims improved. On the downtick: the monetary base. Next week we have the FED’s beige book, Industrial production and reports on Housing, to name a few, within a busy week.
LONG TERM: bull market
The bull market went on pause this week as Portugal’s largest bank ran into problems, and fears of another European banking crisis arose. If you recall, the steep corrections of 2010…
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