Weekend Stock Market Outlook
Stock Market Outlook For The Week of
December 22nd = Uptrend
ADX Directional Indicators: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
The stock market outlook remains in an uptrend. The ADX shows a strong bullish trend in place, price and volume shows a good environment for equities, and OEW's 3300 price target continues to draw closer.
2019-12-22 - SPX Trendline Analysis - Daily
Prices gapped up Friday and trading volume surged, courtesy of a "quadruple witching" day, as weekly and monthly options on stocks and indexes expired. Daily trading volumes on the S&P500 have been above average for the past week and a half or so; mainly to the upside, which usually indicates accumulation.
In the weekly view, prices look a bit extended from the trendline.
2019-12-22 - SPX Trendline Analysis - Weekly
The S&P 500 rose 1.7% last week, as all the U.S. market basically ignored President Trump's impeachment Wednesday night. Continued trade deal optimism, as well as Fed liquidity, is fueling this year's Santa Claus rally.
I expect light trading volumes this week. The market will also close early on the 24th and remain so on the 25th. Keep an eye on stocks ready to break out of well-formed price patterns...or maybe just set-up some stops and enjoy time with your friends and family.
Best to your week and Happy Holidays!
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Charts provided courtesy of stockcharts.com.
If you're interested in learning more about the relationship between price and volume, or how to find and trade the best stocks for your growth strategy, check out this book on Amazon via the following affiliate link: How to Make Money in Stocks: A Winning System in Good Times and Bad. It's one of my favorites.
For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.
Once a year, I review the market outlook signals as if they were a mechanical trading system, while pointing out issues and making adjustments. The goal is to give you to give you an example of how to analyze and continuously improve your own systems.
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