Stock Market Outlook entering the Week of June 30th = Uptrend
- ADX Directional Indicators: Uptrend
- Price & Volume Action: Uptrend
- Objective Elliott Wave Analysis: Uptrend
Almost a carbon copy of last week’s outlook: No change in the signals, the ADX remains bullish, price/volume signals an uptrend. The OEW blog is back, and also showing an uptrend.
2019-06-30 – SPX Trendline Analysis – Daily
In the daily view, the S&P 500 ($SPX) endured a small pullback and picked up 3 distribution days. But prices look less extending going into this week. Trading volume exploded on Friday; likely driven by investors positioning for US-China trade talk outcomes. For now, resistance at the ATH remains in place.
2019-06-30 – SPX Trendline Analysis – Weekly
Not much going on in the weekly view; the uptrend is in place and prices are near ATHs.
It’s a holiday week in the U.S., with markets closed on July 4th for Independence Day. I expect lower trading volumes, with one caveat: response to the US-China trade talks (and to a lesser extent the US-North Korea meetings). In an attempt to restart negotiations, the U.S. partially lifted restrictions on Huawei. So you could expect to see a rally on Monday.
Then again, if we do see a broad rally now, those interest rate cuts may be at risk. If you listen to the talking heads, those cuts are fully priced in…so strength may be bad news…go figure. As always, let prices do the talking and adjust accordingly.
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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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