Weekend Stock Market Outlook

Stock Market Outlook entering the Week of December 4th = Uptrend 

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

As expected, US stocks ran into resistance last week. The S&P 500 fell 1%, the Nasdaq lost 2.7%, the NYSE fell 0.1%, and the Russell 2000 lost 2.4%.  The Dow managed to squeeze out a gain of 0.1%.

Except for the Nasdaq, all the major indexes remain above their respective 20/50/200 day moving averages.

2016-12-04 - US Stock Market Averages

2016-12-04 – US Stock Market Averages

The Nasdaq closed below its 20 and 50 day average.  The reason for this weakness, relative to the other indexes?  Technology stocks fell out of favor during the Trump rally, as institutional investors rotated their holdings into steel, oil drillers, construction and bank stocks.

We also witnessed a lot of stalling action during last week’s pullback, in the form of high price spreads intraday with a closing price near the low.  All the averages ran into this phenomenon at least one day last week.  The Nasdaq hauled in a whopping 4 days!

A few more distribution days were added to the count last week, but the totals aren’t elevated yet (Nasdaq = 5, NYSE = 1, S&P500 = 3, and the Dow = 3).

OEW, which was also expecting a pullback, looks for the selling to end shortly and a resumed uptrend.

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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