Market Outlook entering the Week of October 26th = Confirmed Downtrend

Short-term (20 DMA): Uptrend
All the major stock market averages ended the week above their 20-day moving averages.

Intermediate (50 DMA): Downtrend
Except for the Nasdaq, all the major stock market averages ended the week below their 50-day moving averages.

Long-term (200 DMA): Uptrend
All the major stock market averages ended the week above their 200-day moving averages.

Market Commentary
William O’Neil’s Big Picture analysis switched back to a confirmed uptrend on Tuesday.  The change isn’t too surprising, given the volatility of market price action over the past month or two.  As mentioned last week:

With so much selling in such a short period of time, a price rebound is likely during the coming week(s)…a good opportunity to adjust your holdings if you haven’t already.

Tony Caldaro’s Objective Elliott Wave analysis continue to show a market in correction, with the first of three short-term uptrends close to completion (as indicated by market prices rising above their 20-day moving averages).

Last week’s key price levels for the S&P500 are still in play:

• Support @ 1,920 (falling below continues current trend)
• Resistance @ 1,973 (rising above could signal a change in market outlook)

Elliott Wave Analysis from Elliott Wave Update by Tony Caldaro

2014-10-26 – US Stock Market Averages