Stock Market Outlook entering the Week of March 10th = Uptrend
- ADX Directional Indicators: Downtrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
An entire week of lower closing prices weakened the signals a bit, but not enough to change the trend at this point.
In the weekly view, the S&P finally encountered a lower weekly close, ending the week just below the 40-week / 200-day moving average.
2019-03-10 – SPX Trendline Analysis – Weekly
Switching to a daily view, the S&P500 ($SPX) retreated from the 2,800 resistance level we’ve been tracking, having reached a near-term high of 2817.
2019-03-10 – SPX Trendline Analysis – Daily
The DI+ / DI- switched from bullish to bearish as of Thursday’s close. For the price/volume signal, the S&P remains above 50-day moving average, while distribution days have started to pile up. Again, not enough to change the signal, but worth watching in the coming weeks.
The OEW group posted a weekly summary Saturday, indicating that markets are still in an uptrend, but there’s an expectation that we confirm a new, short-term downtrend in the coming weeks.
A sell-off is a good thing, especially after the v-shaped recovery we’ve seen. Some light selling now is much preferred to heavy selling later…unless you’re looking for valuations to come down…then you might prefer the latter scenario!
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Charts provided courtesy of stockcharts.com.
If you’re interested in learning more about the relationship between price and volume, or how to find and trade the best stocks for your growth strategy, check out this book on Amazon via the following affiliate link: How to Make Money in Stocks: A Winning System in Good Times and Bad. It’s one of my favorites.
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.
Once a year, I review the market outlook signals as if they were a mechanical trading system, while pointing out issues and making adjustments. The goal is to give you to give you an example of how to analyze and continuously improve your own systems.
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