Weekend Stock Market Outlook

Stock Market Outlook For The Week of
December 16th = Downtrend


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


So far, Santa hasn't come to our rescue with his rally yet. Investors are probably rethinking those GI Joe's with the kung-fu grips (if you don't know that line, the movie Trading Spaces would make an excellent last minute gift).

All the indexes are still below their 20, 50, and 200 day moving averages to start this week.

Price charts for $SPX,$COMPQ,$INDU,$NYA,$RUT,$VIX,$TNX,$USD,$CRB,$GOLD

2018-12-16 - US Stock Market Averages

The price/volume combo remains in a downtrend as well. Trading volumes were just about average across the week, but institutions still appear to be in sell mode.

OEW continues with the probable downtrend call, while looking for the SPX to find support at 2577 or even 2550.

The S&P ($SPX) closed at 2599.95 last week, falling below the 2630 support level we've been watching. Friday was also the first time the SPX closed below 2630 since April! A bounce-back on Monday would salvage the sideways trading range, but for now it looks done and dusted.

2018-12-16 - $SPX Technical Analysis - Daily

2018-12-16 - SPX Technical Analysis - Daily

The 2580 support level, which was established way back between February and April, is now in play...which coincides with the OEW target mentioned earlier.

2018-12-16 - $SPX Technical Analysis - Weekly

2018-12-16 - SPX Technical Analysis - Weekly

Not much we can do right now on the long side for growth strategies. Fingers crossed and stops tight if you do decide to brave the waters. For income strategies, some utilities have been doing really well recently, but that's about it. The good news is that P/E ratios are beginning to come down. When the market turns around, there will be some solid names for sale.

Participate. Protect. Prepare.

If you find this research helpful, please tell a friend. If you don't find it helpful, tell an enemy. I share articles and other news of interest via Twitter; you can follow me @investsafely. The weekly market outlook is also posted on Facebook and Linkedin.

You can check out how well (or poorly) the outlook has performed as a stand-alone, signal generator 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.