Stock Market Outlook entering the Week of November 15th = Uptrend
- ADX Directional Indicators: Uptrend
- Price & Volume Action: Uptrend
- Elliott Wave Analysis: Uptrend
The stock market outlook continues in a uptrend to start this week.
The S&P500 ($SPX) gapped up to all time highs again last week (Monday), taking out the resistance trendline too. Even though the gap filled and actually closed lower than the open (bearish), prices still managed to rise during the week.
It’s not to say there aren’t some concerns. The S&P also sits ~12% above the 200-day moving average, which typically means we’re in for another correction.
And the EW uptrend signal remains in place.
Positive news on the COVID vaccine front supported U.S. stocks last week, as investors chose to focus on the end of the pandemic, rather than the current explosion of cases and hospitalizations. This shift was reflected in sector rotation, as money flowed out of the “stay-at-home” technology names, and into cyclical and value stocks.
Best to Your Week!