Market Outlook entering the Week of Dec 21st = Mixed
- Short-term (20 DMA): Uptrend
All the major stock market averages ended the week above their 20-day moving averages.
- Intermediate (50 DMA): Uptrend
All the major stock market averages ended the week above 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.
That was quite a week…nothing like some volatility to liven up the holidays.
By Monday’s close, price/volume analysis showed the major indexes followed last week’s negative trend, moving from an uptrend under pressure into a correction. Even the massive moves to the upside on Wednesday and Thursday weren’t enough to confirm a new uptrend…yet. This is why the market outlook remains at “mixed”.
Elliott Wave Analysis shows the intermediate downtrend was very short, and an uptrend is now probable. Key S&P500 price levels to watch:
- Resistance: 2,085 / 2,131
- Support: 2,019 / 2,070
One positive aspect of all this volatility has been the opportunities to prune my portfolio. Only the strong have survived, leaving me with some free capital for new investments should a new uptrend find some legs.
Elliott Wave Analysis from the ELLIOTT WAVE lives on by Tony Caldaro