Stock Market Outlook For The Week of
March 11th = Uptrend
20/50 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
Friday's impressive break-out put the averages back on solid footing, and all three signals are green to start this week. The Nasdaq leads the way, jumping to new highs; the Russell 2000 is a close second place.
The indexes reversed course last week, and all of them start this week above their 20 and 50 day moving averages.
2018-03-11-US Stock Market Averages
Price and volume action is back into uptrend territory. Growth stocks showed signs of life and indexes are back above their 50-day moving averages. That said, most growth stocks are still outside of buy zones, so we'll have to see if they set up some flat bases, or if new leaders arise.
OEW continues to see an uptrend.
During the past few weeks, the outlook signal switched back and forth between uptrends and downtrends. This type of action is a common aspect of trading systems, regardless of analysis technique. Certain methods work better under certain conditions, which is why a combination of signals is better than just one. That said, there are no guarantees, regardless of how many signals you use.
Which, in turn, is an important reminder about the role of money management in your process. Make sure you always define the maximum allowable loss for each trade; 1% of the account value is what a majority of professionals use.
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.