Market Outlook entering the Week of November 15th = Short-term downtrend/Medium-term uptrend

MOVING AVERAGES

• Short-term (20 DMA): Sell Signal
  All the major stock market averages fell below their 20-day moving averages.

• Intermediate (50 DMA): Mixed
  2 of the major stock market averages (NYSE & Russell 2000) fell below their 50-day moving averages.

• Long-term (200 DMA): Sell Signal 
  All of the major stock market averages fell or remained below their 200-day moving averages.

COMMENTARY
US markets ran into some heavy selling last week, indicated by downward price action with higher trading volumes.  The updated market outlook has a lot of red in it, but that’s not surprising since we’re only a few weeks away from the start of the latest medium-term uptrend.  The 200-day moving averages are higher than then 50-day moving averages, which normally occurs after a heavy sell-off like the one the US markets encountered in late August and September.

That said, this latest sell-off means we’re one step closer to the end of the current bull market in US equities.  According to OEW, the markets have one more rally in them.  The S&P500 is expected to make new highs (2134+) before it’s over, which is ~5% from Friday’s close.  After that point, we’re on borrowed time.

Prepare accordingly!

2015-11-15 – US Stock Market Averages

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