Weekend Market Outlook

Market Outlook entering the Week of May 10th = Mixed

MOVING AVERAGES

  • Short-term (20 DMA): Buy Signal
    Except for the Russell 2000, all the major stock market averages ended the week above their 20-day moving averages.
  • Intermediate (50 DMA): Buy Signal
    Except for the Russell 2000, all the major averages ended the week 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
Prior to Friday’s trading session, the U.S. markets were on the ropes:  high volume selling on Tuesday was topped by even higher volume selling on Wednesday.  Personally, Tuesday was the first time in a long time that every stock I own lost ground.

From a price perspective, Friday’s jump was impressive.  From a trading volume perspective, not so much.  Ideally, large price movements are driven by an increase in trading activity, when compared to the previous session(s).

Small caps (aka the Russell 2000) did get a bump on Friday, but not enough to retake the 20 and 50 day moving averages.

Intermediate Elliott Wave support/resistance levels for the S&P500 remain unchanged for a 3rd straight week.

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

Technically, the uptrend is still intact.  But until small cap prices and overall trading volumes make a return, the outlook remains “mixed” at best.

2015-05-10 - US Stock Market Averages

2015-05-10 – 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
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