Market Outlook entering the Week of Dec 14th = Mixed
- Short-term (20 DMA): Downtrend
All the major stock market averages ended the week below their 20-day moving averages.
- Intermediate (50 DMA): Mixed
The Russell 2000 and Nasdaq closed above their 50-day moving average, along with the DJIA and the S&P500 (although just barely). The NYSE closed below the 50-day moving average.
- Long-term (200 DMA): Mixed
The NYSE closed below the 200-day moving average, while the other major stock market averages ended the week above the 200-day moving averages.
Volume/price analysis of the major indexes moved from a confirmed uptrend to an uptrend under pressure, adding another 2-3 high-volume selling days to the count for a total of 4-5 (depending on the index).
Elliott Wave Analysis shows an intermediate downtrend is underway, but how long and how much remain are uncertain.
Time to prune that low-hanging fruit from your portfolio by selling investments that are showing signs of technical and/or fundamental weakness (breaking key support levels, lowering future revenue predictions, missing quarterly earnings, etc.).
Key S&P500 price levels to watch:
- Resistance: 2,019 / 2,070
- Support: 1,956 / 1,973
Elliott Wave Analysis from the ELLIOTT WAVE lives on by Tony Caldaro