2021-11-07-SPX Trendline Analysis - Daily
The ADX shows bullish price action and trend, as does price/volume.
2021-11-07-SPX Elliott Wave Analysis - Daily - Primary 1
Elliott Wave still shows an uptrend; the 3rd wave of Minor wave 1 rolls on.
As signaled for several months, the U.S. Federal Reserve will start to taper monthly bond purchases, reducing them by $15 billion per month. They're starting from $120 billion per month, so the program won't be completely stopped until next June.
But the Fed still sees inflation as transitory, so there's no rush to raise interest rates. Basically, this means that the Fed will continue to provide stimulus to the economy, just not as much as they have been.
Historically, November and December are positive months for the S&P. Add the better than expected October jobs report, and you've got good reason to be bullish heading into 2022.
But don't blindly chase! The VIX hit 15 mid-week, which has been the low end of it’s price range for some time now. The S&P's price level, relative to the 200 day, is also extended. So use consolidations and corrections to your advantage, knowing that they have a high probability of being a buy the dip opportunities.
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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