Market Outlook entering the Week of July 19th = Uptrend
- Short-term (20 DMA): Buy Signal
All of the major stock market averages rose above their 20-day moving averages.
- Intermediate (50 DMA): Buy Signal
4 of the 5 major stock market averages rose above their 50-day moving averages.
- Long-term (200 DMA): Uptrend
All the major stock market averages closed above their 200-day moving averages.
Another week of high volatility in the US markets last week, but this time to the upside. The Nasdaq got a huge bump from Google stock (up 16% on Friday), which accounts for a little over 8% of that index.
Intermediate support/resistance levels from Objective Elliott Wave analysis remain unchanged from last week:
- Resistance: 2,131/ 2,198
- Support: 2,070 / 2,085
OEW suggests there is no resistance between the S&P500 levels of 2131 and 2198, so we could see a pretty nice rally in the days ahead. This aligns with last week’s commentary regarding other “positive” signs for the market; Put/Call ratio spike, Europe’s quantitative easing, kicking the can down the road on Greek debt.
Price-volume supports the view that we’re back in an uptrend, so the market outlook moved back into the green.
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