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  5. Stock Market Outlook - 2020-08-02

Stock Market Outlook
For The Week Of August 2nd = Uptrend

INDICATORS

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

ANALYSIS

No change in the ADX, price/volume, or Elliott Wave signals, so the stock market outlook maintains an uptrend.

Technical analysis of daily SPX prices

2020-08-02-SPX Trendline Analysis - Daily

The S&P500 ($SPX) remains above the support trendline, as well as the moving averages. The ADX remains bullish, while prices remain above the 50-day moving average with a low number of distribution days.

Technical analysis of daily SPX prices

2020-08-02-SPX Elliott Wave Analysis - Daily - Intermediate A

For Elliott Wave, the Minor 5 wave is nearing completion. The [v] subwave should complete the pattern, as well as the Intermediate [A] wave. Afterwards, the Intermediate [B] correction should take hold.

COMMENTARY

A lot of data last week! On the "Wall Street" side, earnings reports came in fast and furious. Really, it was the Amazon, Apple, and Facebook show, as their performance was much better than expected...and their CEOs were dragged in front of Congress to discuss anti-trust.

Quarterly US GDP growth saw its sharpest downturn on record, but even that wasn't "as bad" as everyone feared. But Democrats and Republicans are still struggling to come up with agreeable terms for the next round of stimulus, which won't help "Main Street" at all.

More earnings on tap this week, along with updated unemployment numbers.

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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