Stock Market Outlook entering the Week of March 12th = Uptrend
- 20/50 Day Moving Averages: Mixed
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
US markets ran into a minor sell-off last week, ahead of this weeks Fed meeting. Expectations for a rate hike reached 90+%, and the odds of a June hike hit 50%.
The NYSE fell below it’s 20 day moving average, and the Russell 2000 took out both the 20 and 50 day moving averages. The other three indexes (DJIA, S&P500, and Nasdaq) got a bounce at their respective 20 day moving averages and remain above their 50 day.
Price and volume action remains positive, but higher volume moves by leading stocks are few and far between. This suggests more sideways action.
OEW uptrend signal remains in place, as we still need “higher highs” before the next correction. That said, we reached an extreme high on the weekly RSI, which usually correlates some form of downtrend in the near future.
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You can check out how well (or poorly) the outlook has tracked the market using past performance estimates:
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro. Charts provided courtesy of stockcharts.com.