Stock Market Outlook entering the Week of October 30th = Downtrend
- 20/50/200 Day Moving Averages: Mixed
- Price & Volume Action: Downtrend
- Objective Elliott Wave Analysis: Downtrend
Prices didn’t find the support needed to turn things around. In fact, market action went the opposite way, and the strong selling was enough to change the market outlook to a downtrend.
Performance to the moving averages weakened, with all the indexes ending the week below their 20 and 50 day moving averages. All the averages still remain above their 200 day moving averages, but the Russell 2000, Dow Jones Industrial, and NYSE are within striking distance.
A lot of heavy volume selling last week (Tuesday, Wednesday, and Thursday) highlights the mood of institutional investors. All the averages picked up at least 2 distribution days, if not 3. 1 distribution day dropped off the count, improving the picture ever so slightly, but not enough to avoid a change in market outlook (S&P, NYSE, Nasdaq, and Dow Jones Industrial counts are 8,8,7,8 respectively).
OEW switched the medium term outlook to a downtrend due to last weeks weakness, and still expects choppy trading action.
If you haven’t already, check your holdings, tightening your stop orders to recent support levels, and take some profits if you’ve hit your targets.