Weekend Stock Market Outlook

Stock Market Outlook entering the Week of September 18th = Mixed 

  • 20/50/200 Day Moving Averages: Mixed 
  • Price & Volume Action: Mixed
  • Objective Elliott Wave Analysis: Mixed 

COMMENTARY
A wild week in the US stock markets.  We still don’t have a clear direction, as some stocks recovered while others continued to sell off.

With regard to moving averages, the Nasdaq recovered its 20 and 50 day moving averages, while the NYSE/S&P500/DJIA did not.  The Russell 2000 split the difference (recovered the 50, but not the 20).

2016-09-18 - US Stock Market Averages

2016-09-18 – US Stock Market Averages

Another Friday, another distribution day.  But don’t read too much into this one, as monthly and quarterly option expiration drove a lot of the trading volume.  Rather, keep in mind that the count is elevated over the past 4 weeks (30% for the Nasdaq, 40% for the S&P, NYSE, and DJIA), meaning large investors are in a selling mood.

OEW sees the start of a potential uptrend, which is supported by oversold levels on several indicators (Weekend Update).  However, a new uptrend would also mean that the recent correction was the smallest in the last 10 years.

In either case, (new uptrend or more downtrend), I’m expecting more volatility this week; the Federal Reserve meets Tuesday and Wednesday.

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  Charts provided courtesy of stockcharts.com.

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