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