Market Outlook for the Week of August 17th = Uptrend in search of support
Short-term (20 DMA):
Last week, all major averages closed above their 20-day moving averages, with the exception of the Dow Jones Industrial’s (DJIA) which closed 10 points below that level.
Intermediate (50 DMA):
The stocks in the NASD led the way, as it reclaimed the 50 DMA last week. The rest of the averages are still working back to that level. Tony’s Objective Elliott Wave analysis again yielded some positive news, as the relative strength (RSI) usually reaches an overbought level in an uptrend such as this, and that hasn’t happened yet. So signs are pointing towards a continued uptrend next week. Last Wednesday, William O’Neil’s Big Picture analysis switched from a “market correction” to a “confirmed uptrend”.
Long-term (200 DMA):
The current bull market [March 2009 – Present] continues. Four major indices (NYSE, S&P500, NASDAQ, DJIA) remain above their 200 day moving averages. The DJIA found support at this level last week and headed higher.
Elliott Wave Analysis from Elliott Wave Update by Tony Caldaro