Market Outlook entering the Week of March 8th = Uptrend @ Risk
- Short-term (20 DMA): Sell Signal
With the exception of the NASDAQ, all the major stock market averages ended the week below their 20-day moving averages.
- Intermediate (50 DMA): Uptrend
With the exception of the NYSE, all the major stock market averages remained above their 50-day moving averages.
- Long-term (200 DMA): Uptrend
All the major stock market averages remained above their 200-day moving averages.
U.S. equities struggled to increase in price this week, and high-volume selling dominated Friday’s trading session for the second week in a row. Not the market action investors want to see during an uptrend. Adding a sell signal from the 20 DMA tells us that it’s time to be cautious with new and/or additional stock buys.
Intermediate-term Elliott Wave Analysis support and resistance levels fell slightly, reflecting the past week’s weakness:
- Resistance: 2,085 / 2,131
- Support: 2,019 / 2,070
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro. For price/volume data, head to stockcharts.com.
Moving Average Signals:
- Uptrend=Market indexes remained above their moving average during the trading week
- Downtrend=Market indexes remained below their moving average during the trading week
- Buy signal=Market indexes fell below their moving averages during the trading week
- Sell signal=Market indexes rose above their moving averages during the trading week