Stock Market Outlook entering the Week of May 9th = 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 this week.

SPX Price Chart for the Week of May 09 2020

A little more volatility the S&P500 ($SPX) last week, but overall, not much different than the prior 2 or 3. Friday’s rally put the S&P back to all time highs, but came with lower trading volume.

Currently, it’s trading ~5% above the 50-day and ~13% above the 200 day. The time the S&P got within 5% of the 200 was last fall. The ADX shows the overall price action weakening a bit, but it’s still bullish. The index picked up another distribution day, through trading volume remains subdued.

SPX Price Chart for the Week of May 09 2020

For Elliott Wave, price action strengthened a bit last week, so maybe now the 4th wave has ended?

COMMENTARY
Ouch…Friday’s jobs report was a bit on the low side. Everyone expected ~1,000,000 jobs would be added in April…and we got about a quarter of that…a pretty big miss, but that target was probably too optimistic anyway. We’re still just in the initial phases of re-opening.

The markets rallied on the news, because it means interest rate hikes are a little further away than they were on Thursday.

Best to Your Week!