Stock Market Outlook entering the Week of September 9th = Uptrend
- 20/50 Day Moving Averages: Uptrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
Good guess last week; the markets sold off after hitting a new high. I’m expecting an increase in trading volume this week (more like a return to somewhat normal trading volumes). Anything is possible at this point; maybe we take a run at new highs, maybe we look for support at the 50 day.
All the indexes are above their 50 day moving averages. The S&P500 and Russell 2000 are sitting on their 20 day moving averages, while the Nasdaq and NYSE are below that level.
Most of the indexes added 2 distribution days to their counts, putting the S&P’s total at 5. That’s a bit elevated, but given the lack of overall volume, not too concerning. If trading volume picks up this week, accumulation/distribution days will be more impactful.
As mentioned at the start, the S&P ($SPX) sold off last week. On the bright side, prices are still above key technical support levels and our price channel remains intact. The ADX turned over…no surprise given 4 consecutive days of lower closing prices. But the directional indicators are essentially even. That’s a long way of saying there’s no change in outlook based on last week’s action.
Extending the view, the January high could act as support this week. Hopefully it holds, and we rally back to new highs over the next few weeks.
Participant, protect, and prepare.
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