Market Outlook entering the Week of Feb 8th = Mixed

MOVING AVERAGES

• 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.

COMMENTARY
Another week, same story; high volatility.  We can now say that the market has been range-bound or trendless to start 2015.  Combined with the high volatility we’re seeing each day, it’s no surprise that short and mid-term trading signals are switching from buy to sell to buy on a daily basis.  Until market prices are able exit the range (to the upside or the downside), I expect the market outlook to remain “mixed”.

Intermediate-term Elliott Wave Analysis reversed course again (verses last week’s downtrend) and shows a uptrend.  With regard to support levels, the S&P500 returned to the support level two weeks ago:

• Resistance: 2,070 / 2,085
• Support: 1,973 / 2,019

Price and volume analysis continues to show a struggling stock market, with another day of high-volume selling added to the count.

Trendless or sideways markets are a great time to prune your portfolio.  Your strongest stocks (fundamentally/technically speaking) will likely be the same stocks that large institutions are holding.  When a new trend finally takes hold, your primed for profit.  If the market rallies, stocks that weather the storm will continue to perform well.  If the market goes into bear mode, the strong stocks will be the last to follow the trend, allowing you a profitable exit.

Remember, the only “good” investments are the ones that make you money!

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro

2015-02-08 – US Stock Market Averages