2021-10-24-SPX Trendline Analysis - Daily
The S&P500 ($SPX) rallied again last week, putting the index back at all time highs, albeit a bit extended from technical support levels. The prior support-turned-resistance trendline did little to slow the advance.
The ADX shows a bullish trend in place, and price/volume action remains in an uptrend as well. The Elliott Wave uptrend remains in place too.
2021-10-24-SPX Elliott Wave Analysis - Daily - Primary 1
S&P500 companies continue to outperform, in terms of Q3 earnings. According to FactSet, 84% of companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since FactSet began tracking this metric in 2008.
I expect some volatility is coming our way this week, in terms of individual stocks names, since so many companies are reporting. Here are some you might be interested in, courtesy of Earnings Whispers:
Source: Earnings Whispers
Now that we're back at all time highs, please, please, please don't get complacent. The S&P500 is up 21% year to date and hasn't seen a proper 10% correction since the pandemic crash in early 2020. The best time to prune your positions is when they're profitable. If you do so, you can buy more shares when the market corrects again.
Best to Your Week!
Charts provided courtesy of stockcharts.com.
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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