Stock Market Outlook For The Week of
January 1st = Uptrend
20/50/200 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
Happy New Year! Low volume trading continued during the holiday shortened trading week, making it a bit difficult to sort out where the market is headed as we kick off 2017. Was the uptick in distribution days (mentioned below) just an artifact of junior traders manning the trading desks, or the start of something more substantial? We'll have to wait and see.
The Dow Jones Industrials was the only average able to end the holiday shortened week above its 20 day moving average (just barely), while the other 4 closed below that level. On the plus side, all the indexes remain above their respective 50 and 200 day moving averages.
2017-01-01-US Stock Market Averages
The indexes ran into 2 distribution days last week, but overall trading volumes were below average. The counts are currently 4 for the NASDAQ, 5 for the Dow Jones Industrials, and 6 for the S&P500 and NYSE. Wednesday and Friday trading sessions also had relatively large spreads (verses the recent average), and prices closed low in the range. Again, it's hard to draw conclusions given that trading volume was well below average, but something to keep an eye on going into the new year. OEW continues to signal an uptrend, but is seeing enough signs of weakness to begin mentioning a possible correction during the next few weeks.