Market Outlook entering the Week of Dec 28th = 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.
A short, typical holiday trading week; the markets rose on low trading volume.
O’neil’s price/volume analysis switched from a correction to an uptrend under pressure, which is a first. The new high for the S&P500 qualifies as the start of a new uptrend, but the high level of distribution days (high volume selling) combines with low trading volume to keep optimism under wraps.
Elliott Wave Analysis shows an intermediate-term uptrend, and the key S&P500 price levels to watch have increased incrementally:
- Resistance: 2,131 / 2,214
- Support: 2,070 / 2,085
I expect a quiet market next week, as the holiday season winds down. Take all the price action with a grain of salt so you can start 2015 profitably.
Elliott Wave Analysis from the ELLIOTT WAVE lives on by Tony Caldaro