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Stock Market Outlook
For The Week Of July 5th = Uptrend

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INDICATORS

    ADX Directional Indicators: Uptrend
    Price & Volume Action: Uptrend
    Elliott Wave Analysis: Uptrend

ANALYSIS

The stock market outlook uptrend remains in place this week.

The S&P ($SPX) rebounded last week, and a new support line is in play. The ADX Directional indicators cross-over again, bullishly this time, marking 4 signal changes in the past 4 weeks. Price / volume remains well behaved.

Technical analysis of daily SPX prices

2020-07-05-SPX Trendline Analysis - Daily

The 200-day moving average provided support last week, so now its sights are set on that March to June trendline.

No change to the Elliott Wave count this week.

Technical analysis of daily SPX prices

2020-07-05-SPX Elliott Wave Analysis - Daily - Intermediate A

COMMENTARY

With Q2 in the books, it's a great time to take stock of your personal financial situation and goals for the year. The first half of 2020 was a wild ride and everyone's finances were impacted in some way.

The recovery, while impressive in some aspects, is not evenly distributed. The Nasdaq was up 10.6% for the first half of the year, while the Dow Jones Industrial was down 10.6% for the year. Lowes (LOW)a dividend king, is back at all time highs, while Cincinnati Financial (CINF), another dividend king, is down almost 40% for the year.

Review your current situation and figure out if any changes are necessary. Do you need to take some profits? Change your allocations or strategy? Redeploy some capital?

Best to your week!



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Charts provided courtesy of stockcharts.com.

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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