Market Outlook entering the Week of October 18th = Medium-term uptrend
- Short-term (20 DMA): Uptrend
All the major stock market averages remained above their 20-day moving averages.
- Intermediate (50 DMA): Uptrend
All the major stock market averages closed above their 50-day moving averages.
- Long-term (200 DMA): Downtrend
All of the major stock market averages remained below their 200-day moving averages.
US stocks extended their rally through week 3. To reiterate my comments from last week, we don’t know is how long the rally will last, so consider a two prong approach: make money by trading shorter-term growth stocks, and take profits from your longer term positions.
Sadly, the end of the current bull market is on the horizon. But there is a silver lining. Here’s what OEW has to say:
When it does conclude a … bear market should then follow, with the market losing between 45% and 50% of its value. This is likely to take one to two years. After that, a 30+ year Cycle wave  should get underway, with bull/bear markets along the way…
Talk about a once in a lifetime investing opportunity!
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 rose above their moving averages during the trading week
- Sell signal=Market indexes fell below their moving averages during the trading week