Stock Market Outlook entering the Week of July 4th = Uptrend
- ADX Directional Indicators: Uptrend
- Price & Volume Action: Uptrend
- Elliott Wave Analysis: Uptrend
The stock market outlook remains in an uptrend to kick-off the first full week in July.
The S&P500 ($SPX) continued to rally last week, adding further distance from it’s recent test of support.
Both the ADX and price/volume signals remain bullish. The ADX trend strengthened substantially, while the number of distribution days decreased again.
Price now sits ~3% and 13% above the 50 and 200 day moving averages, respectively.
Elliott Wave also remains in an uptrend, currently sitting in the the 3rd wave of the overall Minute 5, Minor 5, Intermediate 5, Primary 1, Cycle 3 count.
Employment dominated the news cycle last week, with the report hitting the so-called “Goldilocks” zone. Basically, that means it had enough contradictory information to keep anyone from making changes. The U.S. added more jobs than expected (Yea!), while the overall employment number rose (Boo!).
A short trading week in the U.S., with markets closed on Monday in honor of Independence Day.
Typically, this week starts that the summer trading season, with more volatility (i.e. “choppiness”) due to lower trading volumes.
Best to Your Week!