Stock Market Outlook - Jan 3, 2016

Stock Market Outlook entering the Week of January 3rd = Mixed

MOVING AVERAGES

Short-term (20 DMA): Sell Signal
All the major stock market averages fell below their 20-day moving averages.

Intermediate (50 DMA): Sell Signal / Downtrend
3 of the 5 major stock market averages fell below their 50-day moving averages, and the other 2 remained below that mark.

Long-term (200 DMA): Sell Signal / Downtrend
2 of the 5 major stock market averages fell below their 200-day moving averages, 2 remained below, and 1 (NASDAQ) remained above (slightly).

COMMENTARY

Happy New Year! Another holiday shortened week, but still long enough for the US markets to fall prey to year-end selling.

Price/volume action actually confirmed an uptrend, but two additional distribution days may have already derailed the rally. OEW continues to lean towards an uptrend, but still no confirmation. Trading volumes should get back to normal this week, which should give us better technical indicators.

For those of you keeping score, only the Nasdaq registered a gain in 2015:

Nasdaq = +5.7%
S&P500 = -0.7%
Dow Jones Ind. = -2.2%
Russell 2000 = -5.7%
NYSE = -6.4%

Here's to Profits in 2016!

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For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.Charts courtesy of 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 rose above their moving averages during the trading week

Sell signal = Market indexes fell below their moving averages during the trading week