Stock Market Outlook For The Week of
September 4th = Uptrend
20/50/200 Day Moving Averages: Uptrend
Price & Volume Action: Mixed
Objective Elliott Wave Analysis: Uptrend
US stock indexes saw some selling last week; not enough to change the market outlook, but enough to create raise concern and uncertainty about future performance.
On the positive side, 3 of the 5 major stock market averages regained their 20-day moving averages due to Friday's price jump, and all remain above their respective 50 and 200 day averages.
2016-09-04-US Stock Market AveragesOn the negative side, selling pressure continues to increase (the # of distribution days doubled last month). And Friday's price gains were on low trading volume. The combination of higher volume selling and lower volume advances is a worrisome development as we head into September, but not enough to completely derail the current uptrend.
So far, we've only seen about half of the 5% correction expected by OEW. The latest analysis says that we may not see the full 5% may not materialize in the short-term (Weekend Update).
As mentioned last week, remember to watch your holdings. Consider tightening your stop orders to recent support levels, or take some profits if you've hit your targets.