Stock Market Outlook entering the Week of April 23rd = Downtrend
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- ADX Directional Indicators: Uptrend
- Price & Volume Signals: Mixed
- Elliott Wave Analysis: Mixed
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ANALYSIS
The stock market outlook remains in a downtrend as we continue to wait for confirmation of a new trend.
The S&P500 ($SPX) fell 0.1% last week, while continuing to trade in a tight range (roughly 4130 +/- 1%) since the start of April. The index remains above the 50 and 200-day moving averages, and is now looking for support at the prior trendline of lower highs. The prior high (Feb.2) is the key resistance level.
SPX Price & Volume Chart for the Week of April 23 2023
The ADX signal shows a weak bullish trend in place. No change in price and volume action; the unconfirmed, low volume rally continues.
SPX Elliott Wave Analysis for the Week of April 23 2023 – Bearish Count
No change in Elliott Wave entering the week. The MACD is on the verge of a bearish cross-over, which would confirm the negative divergence in the RSI(5). Regardless of the count (bullish/bearish), those two data points suggest April 18th was a near-term top. A rally above the Feb. 3rd / Intermediate (X) high of 4196 invalidates the bearish count, while dropping below the Minute [i] high of 4039 invalidates the bullish count.
SPX Elliott Wave Analysis for the Week of April 23 2023 – Bullish Count
COMMENTARY
Important data coming out this week includes Q1 GDP on Thursday, and March PCE on Friday, along with another week of earnings reports.
Best To Your Week!
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