Stock Market Outlook entering the Week of May 26th = Downtrend
- ADX Directional Indicators: Downtrend
- Price & Volume Action: Downtrend
- Objective Elliott Wave Analysis: Downtrend
A holiday shortened week ahead, as U.S. markets closed Monday in observance of Memorial Day. No change in signals, so the “downtrend” enters its third week. All the major indexes (S&P, NASDAQ, DJIA, NYSE, R2K) remain below their 50-day moving averages, with the Russell 2000 leading the way down.
In the daily view, S&P 500 prices ($SPX) broke the potential uptrend, but remain above the 2800 level mentioned week.
2019-05-26 – SPX Trendline Analysis – Daily
The ADX directional indicators widened a little bit reflecting the bearish nature of the current market. We added two high-volume selling days last week, and accumulation days were on lower volume. That’s not the greatest price action for a near term bottom. OEW took a break this week; I’m assuming they’d say the current downtrend is extending, but still expect a run at new highs soon.
We’re still looking for a trend in the weekly view.
2019-05-26 – SPX Trendline Analysis – Weekly
Hopefully you rang the register last week and booked some profits from your high performance stocks and/or growth strategies. On the income side, how about those gains by utilities? Not exactly the stuff of new rallies. But all it takes is a tweet, so keep those watch lists updated.
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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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