Market Outlook entering the Week of June 14th = Mixed
- Short-term (20 DMA): Downtrend
4 of 5 major stock market averages remained below their 20-day moving averages. Only the Russell 2000 remained above this level.
- Intermediate (50 DMA): Downtrend
3 of 5 major stock market averages remained 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
Market prices were recovering nicely through Thursday, but Friday’s sell off sent most of the indexes back below moving averages (20/50 DMA).
Price-volume continues to indicate an uptrend and Friday’s sell off did not come with heavy volume. But the NYSE, DJIA, and SP500 all look like they’re in downtrends because they’re below the 50 DMA.
Intermediate support/resistance levels from Objective Elliott Wave analysis remain unchanged for an 8th straight week Commentary continues to favor a mild downtrend.
- Resistance: 2,131/ 2,198
- Support: 2,070 / 2,085
All this combines into a big question mark for the direction of the stock markets. When the outlook is mixed, I focus on keeping losses small rather than buying into new positions.
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