Stock Market Outlook entering the Week of June 3rd = Uptrend
- 20/50 Day Moving Averages: Uptrend
- Price & Volume Action: Mixed
- Objective Elliott Wave Analysis: Uptrend
Stocks spent another week moving sideways to close out the month of May…sell in may and go away indeed. No change in the overall signal and 2 out of 3 signals still in uptrend.
The moving average signal remains in an uptrend, although the Dow Jones did close below its 20-day moving average.
Trading volume was below average, and we added two distribution days last week, so the signal remains mixed.
Tony will be back this week, and I’m still assuming OEW’s uptrend remains in place.
The ADX fell even further and starts this week around 10, with the DI+ and DI- on equal footing. We’ve been here a few times recently: May 2014, April 2015, August 2017. In each case, we saw some pretty major moves within 5 months or so (2014 and 2015 were to the downside, 2017 was to the upside). Momentum indicators remain the tool of the day, for now.
And last but not least, the S&P500 found support at the long-term trendline.
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You can check out how well (or poorly) the outlook has tracked the market using past performance estimates:
- 2015 Performance – Stock Market Outlook
- 2016 Performance – Stock Market Outlook
- 2017 Performance – Stock Market Outlook