Market Outlook entering the Week of April 26th = Uptrend

MOVING AVERAGES

• Short-term (20 DMA): Buy Signal
  The major stock market averages rose above their 20-day moving averages.

• Intermediate (50 DMA): Buy Signal
  All the major averages remained or rose above their 50-day moving averages.

• Long-term (200 DMA): Uptrend
  All the major stock market averages remained above their 200-day moving averages

COMMENTARY
What is it that makes Friday such an unpredictable day for the markets?  Price and trading volume activity gave markets the green light (in terms of an uptrend) in spite of several high volume sell offs over the past few weeks.

Market strength seems to be concentrated in a few sectors, rather than a broad advance.  For example, the NASDAQ’s Friday price advance looked really strong, but a peek under the hood shows trouble.  A few stocks accounted for most of the price move:

• Amazon up 14%
• Microsoft up 10%
• Starbucks up 5%

These 3 stocks account have a big impact on the NASDAQ’s weighted average, so their strength could mask underlying activity.  Which is why you may not have noticed that falling stock prices beat out rising prices by a 7:5 ratio.

Just remember: don’t fight the market.  An uptrend is an uptrend.

Elliott Wave support/resistance levels for the S&P500 rose a notch:

• Resistance:  2,131/ 2,198
• Support:  2,070 / 2,085

2015-04-25 – US Stock Market Averages

Sources:

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