Stock Market Outlook For The Week of
December 4th = Uptrend
20/50/200 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
As expected, US stocks ran into resistance last week. The S&P 500 fell 1%, the Nasdaq lost 2.7%, the NYSE fell 0.1%, and the Russell 2000 lost 2.4%. The Dow managed to squeeze out a gain of 0.1%.
Except for the Nasdaq, all the major indexes remain above their respective 20/50/200 day moving averages.
2016-12-04-US Stock Market AveragesThe Nasdaq closed below its 20 and 50 day average. The reason for this weakness, relative to the other indexes? Technology stocks fell out of favor during the Trump rally, as institutional investors rotated their holdings into steel, oil drillers, construction and bank stocks.
We also witnessed a lot of stalling action during last week's pullback, in the form of high price spreads intraday with a closing price near the low. All the averages ran into this phenomenon at least one day last week. The Nasdaq hauled in a whopping 4 days!
A few more distribution days were added to the count last week, but the totals aren't elevated yet (Nasdaq = 5, NYSE = 1, S&P500 = 3, and the Dow = 3).