Market Outlook entering the Week of October 5th = Confirmed Downtrend
Short-term (20 DMA): Downtrend
All the major stock market averages closed below their 20-day moving averages.
Intermediate (50 DMA): Downtrend
Other than the Dow Industries, all the major stock market averages closed below their 50-day moving averages.
Long-term (200 DMA): Uptrend
The current bull market [March 2009 – Present] continues.
As noted mid-week, William O’Neil’s Big Picture analysis switched from an uptrend under pressure to a full blown correction, and Objective Elliott Wave confirmed an intermediate downtrend.
Although unlikely, the market could recover and reverse course. If trading can push the S&P500 past the 1,973 and 1,986 pricing levels, we might have a shot at another decent uptrend.
Elliott Wave Analysis from Elliott Wave Update by Tony Caldaro