Weekend Stock Market Outlook

Stock Market Outlook entering the Week of June 18th = Uptrend

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

As expected, the U.S. Federal Reserve raised short-term interest rates. Sector rotation continues, as the Dow Jones hit new price highs and the Nasdaq fell below short-term support levels.  The uptrend remains in place, but there are some warning signs.

The Dow Jones Industrials, S&P500, NYSE, and Russell 2000 start the week above key support levels (20 and 50 day moving averages).  The Nasdaq had another poor showing last week, and begins this week below its 20 day moving average.

Price Charts for $INDU,$NYA,$SPX,$USD,$COMPQ,$CRB,$RUT,$GOLD

2017-06-18 – US Stock Market Averages

The overall distribution count can now be considered elevated, with most of the indexes above 5 (the S&P500 is at 6). Further high volume selling will confirm a new downtrend.

OEW is signaling that the uptrend may have topped with a minor correction to follow.

Caution remains the order of the day.  Most of my recent trades have returned to their buy points, indicating a weak environment for growth stocks.

If you find this research helpful, please tell a friend. I share articles and other news of interest via Twitter; you can follow me @investsafely. The weekly market outlook is also posted on Facebook and Linkedin.

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.


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