Weekend Stock Market Outlook

Stock Market Outlook For The Week of
November 13th = Uptrend


20/50/200 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend


What a week! Even though a large amount of the price change occurred after-hours in the futures markets, individual investors still saw the impact on their portfolios (or at least I did!). A good reminder that we can't predict what the stock market will do, we can only be prepared to profit from it.

US stocks rallied Monday on news that the FBI cleared Hillary Clinton in the latest round of email discovery.

On Tuesday, stocks tumbled after hours as the US election appeared to close to call. As the night wore on, stocks revered course and swung massively to the upside as a Trump victory became more certain.

The remainder of the week saw massive price moves (both to the upside and downside) as large investors reallocated their holdings to companies that will likely benefit from Trump's policies.

Performance to the moving averages exploded higher. All the indexes are back above their 200 day moving averages. Only the Nasdaq remains below its 20 and 50 day moving averages.

2016-11-13-US Stock Market Averages

2016-11-13-US Stock Market Averages

Institutional selling remains high. But only the Nasdaq picked up another distribution day (Thursday) as money rotated out of technology.

OEW switched the medium term outlook to a downtrend due to last weeks weakness, and still expects choppy trading action.

As mentioned last week, check your holdings. For stocks that were out of favor, your stops were probably triggered. And for those that were in favor, you're probably sitting on some nice gains! When the markets find support, you can evaluate new positions.

For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro. Charts provided courtesy of StockCharts.com.