Market Outlook entering the Week of Jan 11th = Mixed
- Short-term (20 DMA): Mixed
With the exception of the NYSE Composite and Dow Jones Industrial, all the major stock market averages ended the week at their 20-day moving averages.
- Intermediate (50 DMA): Uptrend
With the exception of the NYSE Composite, all the major stock market averages ended the week at or above their 50-day moving averages.
- Long-term (200 DMA): Uptrend
With the exception of the NYSE Composite, all the major stock market averages ended the week above their 200-day moving averages.
To kick off 2015, we picked up right where we left off after the last full week of trading in 2014; high volatility.
O’neil’s price/volume analysis responded in kind, starting the week with an uptrend under selling pressure, then downgrading to a correction after Monday’s loss, and rebounding to an uptrend on Thursday.
Elliott Wave Analysis shows intermediate-term uptrends, with key S&P500 price levels remaining unchanged from last week:
- Resistance: 2,070 / 2,085
- Support: 1,973 / 2,019
More than likely, your strong stocks were unphased by the markets gyrations last week and you’re still holding them in your accounts. High volatility creates a lot of opportunity got trading, but eventually weeds out companies with underlying issues. So remember to cut your losses at 7%!
Elliott Wave Analysis from the ELLIOTT WAVE lives on by Tony Caldaro