Weekend Stock Market Outlook – October 24 2021

Stock Market Outlook entering the Week of October 24th = Uptrend

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

A strong week of trading put the S&P500 back at all time high’s and all three signals in the green, so the stock market outlook remains in an uptrend to start the last week of October trading.

Technical analysis of daily SPX prices

SPX Price & Volume Chart for the Week of October 24 2021

The S&P500 ($SPX) rallied again last week, putting the index back at all time highs, albeit a bit extended from technical support levels.  The prior support-turned-resistance trendline did little to slow the advance.

The ADX shows a bullish trend in place, and price/volume action remains in an uptrend as well. The Elliott Wave uptrend remains in place too.

Technical analysis of daily SPX prices

SPX Technical Analysis for the Week of October 24 2021

S&P500 companies continue to outperform, in terms of Q3 earnings.  According to FactSet, 84% of companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since FactSet began tracking this metric in 2008.

S&P500 earnings Q320201

Source: FactSet

I expect some volatility is coming our way this week, in terms of individual stocks names, since so many companies are reporting.  Here are some you might be interested in, courtesy of Earnings Whispers:

Corporate Earnings - Week of 10/25/201

Source: Earnings Whispers

Now that we’re back at all time highs, please, please, please don’t get complacent. The S&P500 is up 21% year to date and hasn’t seen a proper 10% correction since the pandemic crash in early 2020.  The best time to prune your positions is when they’re profitable.  If you do so, you can buy more shares when the market corrects again.

Best to Your Week!

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