Stock Market Outlook entering the Week of October 1st = Uptrend
- 20/50 Day Moving Averages: Uptrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
October, already? The uptrend rolls on, with no change in signals this week. Many of blogs / newsletters I read continue to sound the alarm regarding pensions, government debt, monetary policy, and the growing disconnect between stock prices and underlying fundamental values. But the fact remains that US equity markets remain the least dirty shirt in the hamper, so to speak, and as such are likely to see continued capital inflows.
All the indexes remain above their 20 and 50 day moving averages to kick off the week.
Leading stocks continue to move higher, although proper bases and buy points are still lacking. The second point is actually not surprising; without proper corrections, proper bases don’t get built. My hypothesis: the lack of actual corrections is the reason I see a lot more flat bases and or base on base patterns, verses cups and double bottoms.
The OEW uptrend remains in place to start October as well.
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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.