Weekend Stock Market Outlook
Stock Market Outlook For The Week of
January 26th = Uptrend
ADX Directional Indicators: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend
An uptrend remains in place for the stock market outlook this week.
The ADX is still bullish, but the directional indicators weakened. Price/volume still shows a market uptrend, as well as an increase in institutional selling. OEW appears to be bullish (according to the OEW chart updates at stockcharts), but the blog hasn't posted new commentary in over a month.
2020-01-26 - SPX Trendline Analysis - Daily
The S&P ($SPX) continues to plod along within the price channel we've been following. The market closed 3% above the 50-day moving average, and just shy of 10% above the 200-day moving average. Consider those levels when calculating position sizes if you're placing new trades.
2020-01-26 - SPX Trendline Analysis - Weekly
In the U.S., last week's headlines were dominated by impeachment proceedings, as will this week's I'm sure. Elsewhere, the deadly coronavirus in Wuhan China is the top story. The former is expected to have minimal impact, while the latter is a complete unknown. The combination of Chinese New Year celebrations, dense population, and mass travel makes prediction of any impact difficult; human, financial, or otherwise.
One thing that will have an impact: earnings. Per Factset, about 30% of the S&P 500 will report earnings this week. Hopefully you get an Intel (INTC), and not a Discover Financial (DFS)!
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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