Weekend Stock Market Outlook

Stock Market Outlook For The Week of
August 6th = Uptrend


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


A strange week:  The DJIA sits at all time highs, the S&P500 moved sideways, the Nasdaq fell to a support level, and the Russell 2000 entered a downtrend(!).  Over the past two weeks, the Dow has been on a tear, with 9 higher closes and 8 at all time highs.

Except for the Russell 2000, all the major indexes remain above their 20 and 50 day moving averages.


2017-08-06-US Stock Market Averages

No change in the price/volume indicator...still in an uptrend.

OEW remains in an uptrend, with an eye on the 2478 level on the S&P500.

Recent earnings announcements have been make or break for growth stocks, causing prices to gap up or down during after hours/pre-open trading.  Even positive results are not enough to guarantee a positive price move, as companies have beat earnings estimates, but not by a wide enough margin, and then sold off.   This makes investing a bit more risky.  You have to hold a position going into the market close, which is not a big deal for longer term holdings, but makes new positions and/or set-ups difficult to manage. This is why proper position sizing is so important...sell as soon as the position moves against you and keep your losses small!

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You can check out how well (or poorly) the outlook has tracked the market using past performance estimates:

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