Stock Market Outlook entering the Week of January 10th = Uptrend
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- ADX Directional Indicators: Uptrend
- Price & Volume Action: Uptrend
- Elliott Wave Analysis: Uptrend
ANALYSIS
The stock market outlook remains in an uptrend.
2021-01-10-SPX Trendline Analysis-Daily
Price remains extended from the 200-day moving average (~14.5%), as it has for the past 9 weeks or so.
But all three signals (ADX, Price / Volume, and Elliott Wave) show an uptrend for the S&P500 ($SPX). The ADX crossed over briefly when the market sold off at the start of the week.
2021-01-10-SPX Elliott Wave Analysis-Daily-Primary1
2021-01-10-SPX Trendline Analysis-Weekly
COMMENTARY
The December jobs reports showed the first monthly loss since April, resulting from new lockdowns and restrictions from the holiday surge in new coronavirus cases. Democrats won the Georgia runoff elections, leaving the party in control of the White House and Congress.
I, along with many others, am still processing the other debacle we witnessed last week. While the impact of the event on markets was minimal, a deep political divide still exists within the U.S.. So there will likely be more unrest (as we saw throughout 2020) as we work through it. But work through it we will.
Best to Your Week!
