Fairly flat price action for the S&P500 ($SPX) S&P heading into the Memorial Day holiday. Currently, it’s trading ~2% above the 50-day and ~11% above the 200 day. Pretty much the same place it was last week.
2021-05-30-SPX Trendline Analysis - Daily
The ADX remains below 20, indicating the lack of a trend, but price action over the pasts week has been bullish, flipping this signal.
The index picked another distribution day, but two fell off the count. The overall number is still high, so it's likely this signal will remain mixed for a few of weeks.
2021-05-30-SPX Elliott Wave Analysis - Daily - Primary 1
For Elliott Wave, it looks like the 5th minute wave has finally arrived.
First quarter earnings are largely in the books, with a majority of companies exceeding their own revenue projections, as well as analyst expectations. And let's not forget operating margins; those have also been at record levels.
Since the U.S. is also leading the vaccine rollout, it stands to reason that international equities could see similar out-performance soon.
Short trading week in the U.S., with markets closed in observance of Memorial Day on Monday.
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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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