Market Outlook entering the Week of May 31st = Mixed
- Short-term (20 DMA): Sell Signal
3 of 5 major stock market averages fell below their 20-day moving averages. Only the NASDAQ and Russell 2000 remained above this level.
- Intermediate (50 DMA): Sell Signal
3 of 5 major stock market averages fell below their 50-day moving averages. Only the NASDAQ and S&P 500 remained above this level.
- Long-term (200 DMA): Uptrend
All the major stock market averages remained above their 200-day moving averages
The market continues to vascillate in a fairly tight range. Price-volume action shows some selling pressure, but not enough to warrant a change in market outlook. Objective Elliott Wave analysis shows intermediate support/resistance levels for the S&P500 remain unchanged for a 6th straight week.
- Resistance: 2,131/ 2,198
- Support: 2,070 / 2,085
Tony C. summed of the recent price movements nicely:
For the past three months this market has been a day traders dream. It has spent three months within a 95 point trading range: mostly drifting to the upside with several larger pullbacks along the way. From an Elliott Wave perspective it has been somewhat of a nightmare.
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