Stock Market Outlook entering the Week of April 23rd = Downtrend
- ADX Directional Indicators: Uptrend
- Price & Volume Signals: Mixed
- Elliott Wave Analysis: Mixed
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.
The ADX signal shows a weak bullish trend in place. No change in price and volume action; the unconfirmed, low volume rally continues.
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.
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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