Weekend Stock Market Outlook

Stock Market Outlook entering the Week of July 9th = Uptrend

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

COMMENTARY
The holiday shortened week wasn’t without its own fireworks, as volatility returned to the US markets in a major way.  Proceed with caution; the only thing keeping the market outlook in “uptrend” territory is price verses the 50 day moving average.  Had the trading week ended on Thursday, the outlook for this week would have changed to a downtrend!

The Nasdaq continues to lead markets lower from a moving average standpoint.  Of more concern is fact that the S&P 500 and Russell 2000 also fell to their respective 50 day moving averages last Thursday.  Friday’s recovery postponed a change to a downtrend, putting the signal at mixed.

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

2017-07-09- US Stock Market Averages

The price/volume viewpoint is the same as last week, with price action supporting an uptrend, while volume action supporting a downtrend.  Friday’s rally came with reduced trading volume, which is the opposite of what you want to see when prices bounce off the 50-day.

OEW finally gave us a downtrend confirmation for all but the Dow, with the expectation that the Dow (being the leading index) will likely provide confirmation when the downtrend is almost complete.


 

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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