Stock Market Outlook entering the Week of May 9th = Uptrend
- ADX Directional Indicators: Uptrend
- Price & Volume Action: Uptrend
- Elliott Wave Analysis: Uptrend
The stock market outlook shows an uptrend in place to start this week.
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.
For Elliott Wave, price action strengthened a bit last week, so maybe now the 4th wave has ended?
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!