2021-11-21-SPX Trendline Analysis - Daily
The ADX continues to highlight bullish price action and trend, as does price/volume. Friday was a lower close on higher volume, thanks in part to November options expiration. But the price movement wasn’t larger enough to qualify for a distribution day.
2021-11-21-SPX Elliott Wave Analysis - Daily - Primary 1
Elliott Wave maintains an uptrend. Both the RSI and MACD show negative divergences verses the rising price action; common for 5th waves, but also a sign of a weak rally.
A short trading week on tap in the U.S., due to the Thanksgiving Holiday (markets closed Thursday and shortened trading hours Friday).
Historically, Thanksgiving week is a positive one for the markets, but the possible nomination of the next chairperson of the Federal Reserve is a wildcard this year. Personal spending and income data and the PCE index for October are released on Wednesday, which are sure to add fuel to the inflation debate.
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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