Stock Market Outlook entering the Week of December 20th = Uptrend

• • ADX Directional Indicators: Uptrend
  • Price & Volume Action: Uptrend
  • Elliott Wave Analysis: Uptrend

ANALYSIS

The stock market outlook remains in an uptrend to kick-off the week of Christmas.

2020-12-20-SPX Trendline Analysis-Daily

The S&P500 ($SPX) remains in an uptrend, based on all three signals (ADX, price & volume, and Elliott Wave. Price remains very extended from the 200-day moving average (~16% now).

2020-12-20-SPX Elliott Wave Analysis-Daily-Primary1

Elliott Wave hasn’t changed much in the recent weeks; remains in an uptrend.

COMMENTARY

Representatives in the U.S. are trying to finalize the details of a stimulus package. An agreement likely buoys the market in the coming week. But longer term, economic data shows the “recovery” is slowing (e.g. lower retail sales and job growth) as coronavirus cases continue to increase, along with the number of restrictions.

The stock market has largely shrugged off these concerns. It doesn’t hurt that the Fed continues to provide support. Last week, they announced that they’ll continue to buy $100 billion in assets per month and keep interest rates low, until inflation and employment increase.

A shortened trading week on tap, with the U.S. markets closing early on Thursday and remaining closed Friday in observance of Christmas.

Best to Your Week!