Weekend Stock Market Outlook
Stock Market Outlook For The Week of
February 9th = Downtrend
ADX Directional Indicators: Uptrend
Price & Volume Action: Mixed
Objective Elliott Wave Analysis: Downtrend
The stock market outlook remains in a downtrend this week because we don't have confirmation from two signals yet. The ADX directional indicators flipped back to an uptrend. The price and volume indicator remains mixed due to elevated distribution days. OEW appears to show a subdividing downtrend, so that remains negative for now. If price passes 3350 or finds support at 3300, I expect this signal to switch.
2020-02-09 - SPX Trendline Analysis - Daily
The S&P500 found support at it's 50-day moving average and rebounded back to all time highs. Consumer staples and real estate led the way, while information technology stocks were weak. The long-term uptrend remains in play, about 10% below current levels...right around the 200 day moving average.
2020-02-09 - SPX Trendline Analysis - Weekly
China began it's stimulus plan to soften the impact of the coronavirus, as well as cutting tariffs on U.S. goods in half (part of the Phase 1 trade deal). In the U.S., non-farm payrolls were well above expectations thanks to service sector jobs, while employment in manufacturing declined.
Earnings have been okay so far. According to FactSet, earnings growth will be 0.7% versus the same quarter last year.
Best to your week!
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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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