Stock Market Outlook entering the Week of January 15th= Uptrend
- 20/50/200 Day Moving Averages: Uptrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
Another week, another failed attempt at passing Dow 20,000…not that the level itself is all that important. With the exception of the Nasdaq, most of the indexes haven’t moving much higher than their mid-December levels. Are we digesting the post-election gains, waiting for earnings, or at the start of a new downtrend?
The Dow Jones took its turn to close below the 20 day moving average, although the Russell 2000 gave it a run for its money. All the indexes remain above their respective 20, 50 and 200 day moving averages.
Price and volume action remains positive, although the Dow did run into some heavy selling last week. Still, the distribution day counts are reasonable, given the sideways price action we’ve seen over the past few weeks.
- NASDAQ = 4 (-)
- Dow Jones Industrial = 6 (-1 / +2)
- S&P = 4 (-2)
- NYSE = 4 (-2)
OEW continues to signal an uptrend. However, short-term action is up for debate. The inability to move prices higher has provided some rationale for a short, 5% correction.