2020-10-11-SPX Trendline Analysis - Daily
The S&P500 ($SPX) experienced a really good week, finding support at the 50-day moving average and rallying from there. The ADX and price/volume flipped to an uptrend on Monday.
And since price rose above 3429, Elliott Wave also shows an uptrend, and more than likely a switch to a bullish count like the one mentioned last week.
Stimulus remains the driving force behind the U.S. markets. Only right now, it's the negotiations, not the actual money. It doesn't appear to be a "will they / won't they" decision. Both political parties seem to recognize that government assistance is still required to keep the economy afloat while the pandemic continues to play out. The question is how much will be approved (converging around 2 trillion), and when it will get passed (pre or post-election).
The Fed is also pushing for renewed fiscal support from the legislature, and remains ready to keep policy "accommodating" (i.e. expect interest rates to remain low for a while).
Best to your week!
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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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