Stock Market Outlook entering the Week of August 18th = Downtrend
- ADX Directional Indicators: Downtrend
- Price & Volume Action: Downtrend
- Objective Elliott Wave Analysis: Downtrend
No change in the market outlook; the ADX, price/volume, and OEW indicators remain in downtrends.
2019-08-17 – SPX Trendline Analysis – Daily
The S&P500 ($SPX) remains under the new down trendline, as well as the 50-day moving average. On the plus side, prices found a floor of support near the 2,825 three times since the start of August.
2019-08-17 – SPX Trendline Analysis – Weekly
In the weekly view, the plotted trendline had been holding strong, but finally gave way last week.
U.S. 30-year bonds fell below the Fed Funds rate, meeting yet another definition for an inverted yield curve. As mentioned last time, don’t try to time the market based on this indicator. Just know that the economy has issues, and prepare accordingly. Some companies are already acting like they’re operating within a recession. Others may not be effected for some time.
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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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