The Safe Investing Blog

Market Outlook entering the Week of June 14th = Mixed

MOVING AVERAGES

• Short-term (20 DMA): Downtrend
  4 of 5 major stock market averages remained below their 20-day moving averages.  Only the Russell 2000 remained above this level.

• Intermediate (50 DMA): Downtrend
  3 of 5 major stock market averages remained below their 50-day moving averages. Only the NASDAQ and S&P 500 remained above this level.

• Long-term (200 DMA): Uptrend
  All the major stock market averages remained above their 200-day moving averages

COMMENTARY
Market prices were recovering nicely through Thursday, but Friday’s sell off sent most of the indexes back below moving averages (20/50 DMA).

Price-volume continues to indicate an uptrend and Friday’s sell off did not come with heavy volume.  But the NYSE, DJIA, and SP500 all look like they’re in downtrends because they’re below the 50 DMA.

Intermediate support/resistance levels from Objective Elliott Wave analysis remain unchanged for an 8th straight week  Commentary continues to favor a mild downtrend.

• Resistance:  2,131/ 2,198
• Support:  2,070 / 2,085

All this combines into a big question mark for the direction of the stock markets.  When the outlook is mixed, I focus on keeping losses small rather than buying into new positions.

2015-06-14 – US Stock Market Averages

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

Moving Average Signals:

• Uptrend=Market indexes remained above their moving average during the trading week
• Downtrend=Market indexes remained below their moving average during the trading week
• Buy signal=Market indexes fell below their moving averages during the trading week
• Sell signal=Market indexes rose above their moving averages during the trading week

Market Outlook entering the Week of June 7th = Mixed

MOVING AVERAGES

• Short-term (20 DMA): Downtrend
  3 of 5 major stock market averages remained below their 20-day moving averages.  Only the NASDAQ and Russell 2000 remained above this level.

• Intermediate (50 DMA): Downtrend
  3 of 5 major stock market averages remained below their 50-day moving averages. Only the NASDAQ and S&P 500 remained above this level.

• Long-term (200 DMA): Uptrend
  All the major stock market averages remained above their 200-day moving averages

COMMENTARY
Price-volume continues to show an uptrend, albeit a weak one, thanks to Friday’s positive performance.  That said, we’ve seen several days of high volume selling…one more large drop would be enough to move the markets into a correction.

Intermediate support/resistance levels from Objective Elliott Wave analysis remains unchanged for a 7th straight week!  Commentary suggests that we’ll be testing the support levels shortly.

• Resistance:  2,131/ 2,198
• Support:  2,070 / 2,085

2015-06-07 – US Stock Market Averages

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

Moving Average Signals:

• Uptrend=Market indexes remained above their moving average during the trading week
• Downtrend=Market indexes remained below their moving average during the trading week
• Buy signal=Market indexes fell below their moving averages during the trading week
• Sell signal=Market indexes rose above their moving averages during the trading week

Market Outlook entering the Week of May 31st = Mixed

MOVING AVERAGES

• Short-term (20 DMA): Sell Signal
  3 of 5 major stock market averages fell below their 20-day moving averages.  Only the NASDAQ and Russell 2000 remained above this level.

• Intermediate (50 DMA): Sell Signal
  3 of 5 major stock market averages fell below their 50-day moving averages. Only the NASDAQ and S&P 500 remained above this level.

• Long-term (200 DMA): Uptrend
  All the major stock market averages remained above their 200-day moving averages

COMMENTARY
The market continues to vascillate in a fairly tight range.  Price-volume action shows some selling pressure, but not enough to warrant a change in market outlook.  Objective Elliott Wave analysis shows intermediate support/resistance levels for the S&P500 remain unchanged for a 6th straight week.

• Resistance:  2,131/ 2,198
• Support:  2,070 / 2,085

Tony C. summed of the recent price movements nicely:

For the past three months this market has been a day traders dream. It has spent three months within a 95 point trading range: mostly drifting to the upside with several larger pullbacks along the way. From an Elliott Wave perspective it has been somewhat of a nightmare.

2015-05-30 – US Stock Market Averages

Sources:

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.  For price/volume data, head to stockcharts.com.

Moving Average Signals:

• Uptrend=Market indexes remained above their moving average during the trading week
• Downtrend=Market indexes remained below their moving average during the trading week
• Buy signal=Market indexes fell below their moving averages during the trading week
• Sell signal=Market indexes rose above their moving averages during the trading week