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