Market Outlook entering the Week of July 19th = Uptrend

MOVING AVERAGES

• 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.

COMMENTARY
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.

2015-07-19 – 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