Stock Market Outlook entering the Week of May 22nd = Downtrend
MOVING AVERAGES
- Short-term (20 DMA): Downtrend
All the major stock market averages remained below their 20-day moving averages.
- Intermediate (50 DMA): Downtrend
All of the major stock market averages remained below their 50-day moving averages.
- Long-term (200 DMA): Mixed
3 of the 5 major stock market averages remained above their 200-day moving averages.
COMMENTARY
No change in the market outlook based on last week’s trading action. Friday’s option expiration gave the expected boost to prices, but volume was a bit subdued.
Price/volume action still shows a lot of high volume selling. Per OEW, we could a small rally before prices head farther south.
2016-05-22 – US Stock Market Averages
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro. Price/volume charts are provided courtesy of 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
