Stock Market Outlook entering the Week of December 20th = Downtrend

MOVING AVERAGES

• Short-term (20 DMA): Downtrend
  All the major stock market averages ended the week below their 20-day moving averages.

• Intermediate (50 DMA): Downtrend
  All the major stock market averages ended the week below their 50-day moving averages.

• Long-term (200 DMA): Downtrend
  All major stock market averages ended the week below their 200-day moving averages.

COMMENTARY
Last Friday was a “quadruple witching day” for the US market.  With something like $1.1 trillion of S&P 500 options expiring, volatility was a given.  Unfortunately price movement was to the downside, and not even the mid-week, Fed rate hike rally could help.

Price/volume and OEW are both leaning towards a downtrend, but nothing is completely confirmed at this point.  Until the market shows some signs of strength, it’s best to remain cautious and protect your capital.

2015-12-20 – 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