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.
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