2021-04-04-SPX Trendline Analysis - Daily
The S&P500 ($SPX) ended the shortened trading week higher, crossing 4000 for the first time ever. The ADX finally joined the other signals in bullish territory, and 3 distribution days fell off the count.
2021-03-28-SPX Elliott Wave Analysis - Daily - Primary 1
The Elliott Wave count remains the same as last week, showing the S&P in the third wave of a Minor 5.
Last week, the Biden administration unveiled the "American Jobs Plan", proposing $2+ trillion in new spending over the next 8 years, including:
Our infrastructure could use the help for sure, so this package could do a lot of good if handled correctly (i.e. real improvements are made rather than pork barrel spending and pet projects).
The goal is to make the spending "revenue-neutral", which is another way of saying tax hikes. Right now, that would be increased corporate taxes. Not quite as high as they were prior to the Trump administrations tax cuts, and still near all time lows, but an increase either way. The last round of cuts were largely absorbed via increased dividends and share buy-backs, so it's not clear how the increases will be addressed.
Best to Your Week!
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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