2020-12-27-SPX Trendline Analysis - Daily
All three signals (ADX, Price / Volume, and Elliott Wave) show an uptrend in place for the S&P500 ($SPX), though the uptrend did appear to weaken last week. The ADX almost crossed over, we've collected a moderate number of distribution days, and price is still extended from the 200-day moving average (~13%).
The U.S. congress passed a relief bill, which now sits in limbo as it awaits the President's signature (or veto). And a Brexit deal was reached. Vaccinations continue to increase and provide confidence in a return to normalcy, but a new variant of the virus resulted in U.K. travel bans and infections continue to accelerate.
Another shortened trading week on tap, with the U.S. markets closed on Friday on New Years Day.
Best to Your Week!
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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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