Weekend Stock Market Outlook
Stock Market Outlook For The Week of
January 5th = Uptrend
ADX Directional Indicators: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
Happy New Year! The stock market outlook kicks off the new year and decade off in an uptrend. The ADX directional indicators are bullish, price/volume is bullish, and OEW was/is bullish.
2020-01-05 - SPX Trendline Analysis - Daily
The S&P500 remains above the plotted trendlines and support levels in both the daily and weekly views. Prices start the week ~3% above the 50-day and 8% above the 200-day moving averages.
2020-01-05 - SPX Trendline Analysis - Weekly
It's hard to make too many judgement on the market action over the past 2 weeks, due to the light holiday trading volumes. One thing we can say for certain: geopolitical risk is high entering 2020, and will add some volatility to the stock market.
Just like no one expects the inquisition, no one expected a U.S. drone strike against Iran in Iraq last week. These tensions aren't new; but they will be front and center for the near future.
Even without the latest escalation, I still wouldn't have been surprised by a sell-off early in January. Now we have a potential scapegoat. Don't let that deter you from following your process. If you're looking for growth, find stocks with strong fundamentals breaking out of strong price patterns. Income investors need to avoid chasing yield, and sit on their current portfolios if nothing meets their criteria (which is likely given P/E ratios these days).
Best to your week!
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.
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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