Market Outlook entering the Week of Feb 1st = Mixed
- Short-term (20 DMA): Downtrend
With the exception of the Dow Jones Industrial, all the major stock market averages ended the week below their 20-day moving averages.
- Intermediate (50 DMA): Downtrend
With the exception of the NYSE Composite, 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.
Last week was a rough one for investors. Even sectors that held up relatively well the past few months, such as utilities and consumer goods, were hit hard.
Intermediate-term Elliott Wave Analysis reversed course (verses last week’s uptrend) and shows a downtrend underway. With regard to support levels, the S&P500 slipped a notch, with last weeks support level becoming a resistance level this week (2,019):
- Resistance: 2,019 / 2,070
- Support: 1,956 / 1,973
From a technical analysis perspective, all the major market averages have now encountered a “death cross” in their short-term moving averages. In this case, the 20 and 50 day moving averages crossed, which corresponds to a short-term downtrend.
Price/volume analysis starts this week in a cautionary mode, due to several days of high volume selling last week.
Safe investors always protect against losses, regardless of the time frame, because there are always new opportunities for those who still have money to invest!
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro