Weekend Stock Market Outlook – April 4 2021

Stock Market Outlook entering the Week of April 4th = Uptrend

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

ANALYSIS
The stock market outlook shows an uptrend in place to start the week of April 4th.

Technical analysis of daily SPX prices

2021-04-04-SPX Trendline Analysis-Daily

The S&P500 ($SPX) ended the shortened trading week higher, crossing 4000 for the first time ever. The ADX finally joined the other signals in bullish territory, and 3 more distribution days fell off the count.

Technical analysis of daily SPX prices

2021-04-04-SPX Elliott Wave Analysis-Daily-Primary1

The Elliott Wave count remains the same as last week, showing the S&P in the third wave of a Minor 5.

COMMENTARY
Last week, the Biden administration unveiled the “American Jobs Plan”, proposing $2+ trillion in new spending over the next 8 years, including:

  • $620 billion for transportation infrastructure (roads, bridges, transit, electric vehicles)
  • $400 billion for domestic manufacturing and workforce development
  • $400 billion for disability/elderly care programs
  • $300 billion for housing
  • $200 billion for expanded broadband and electrical grid improvements
  • $180 billion in research and development focused on clean energy

Our infrastructure could use the help for sure, so this package could do a lot of good if handled correctly (i.e. real improvements are made rather than pork barrel spending and pet projects).

The goal is to make the spending “revenue-neutral”, which is another way of saying tax hikes. Right now, that would be increased corporate taxes. Not quite as high as they were prior to the Trump administrations tax cuts, and still near all time lows, but an increase either way. The last round of cuts were largely absorbed via increased dividends and share buy-backs, so it’s not clear how the increases will be addressed.

Best to Your Week!

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