Market Outlook entering the Week of Feb 15th = Uptrend
- 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.
As soon as we start to discuss a range-bound market, prices break that range to the upside and hit new highs. Just confirms that we can’t predict, we can only prepare.
Intermediate-term Elliott Wave Analysis reversed course again (verses last week’s downtrend) and shows a uptrend. With regard to support levels, last week’s resistance is this week’s support:
- Resistance: 2,131 / 2,198
- Support: 2,070 / 2,085
Price and volume analysis confirmed an uptrend, with some baggage from the number of high volume selling in recent weeks. Ideally, higher than average trading volume would also accompany new highs in price. That said, nothing about the market action over the past year has been ideal.
U.S. markets are closed Monday for Presidents Day.
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.
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