Stock Market Outlook entering the Week of July 8th = Uptrend
- 20/50 Day Moving Averages: Uptrend
- Price & Volume Action: Mixed
- Objective Elliott Wave Analysis: Mixed
U.S. stocks rallied last week, surviving the start of back and forth tariffs between the U.S. and China. The overall outlook remains in an uptrend.
With the exception of the Dow Jones Industrials, all the indexes recovered both their 20 and 50 day moving averages. So this signal switches back into the uptrend camp.
Low trading volumes make any conclusions from last week’s action difficult. But at least we didn’t see any high volume sell-offs! So the signal remains “mixed” heading into this week.
OEW continues to show a downtrend “may” be underway, but also mentions that we’re still in an uptrend until a downtrend is confirmed…definitely mixed signals there.
For the S&P500 ($SPX), the ADX is hanging right around 20. The bearish directional indicator (DI-) remains in charge for now.
The support levels near 2700 held (short and long term views), and the S&P bounced off the lower channel of the current uptrend. Trading volume was lacking though, so we may retest the uptrend before moving higher. 2787 remains the upside resistance level.
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You can check out how well (or poorly) the outlook has performed as a stand-alone, signal generator using past performance estimates:
- 2015 Performance – Stock Market Outlook
- 2016 Performance – Stock Market Outlook
- 2017 Performance – Stock Market Outlook