2022-07-03-SPX Trendline Analysis - Daily
We didn't get any strong up days last week, so the ADX stays bearish. Price/volume remains mixed, with the latest attempt on life support after the index closed below the follow-through day on Thursday. Trading volume remains an issue, and the index picked up two distribution days already.
2022-07-03- SPX Elliott Wave Analysis - Daily - Primary Y
Elliott Wave remains mixed. Depending on how you interpret the waves, the SPX could be in the second wave of a bear market rally or the third wave of another wave down. Benefit of the doubt goes to a bear market rally, thanks to positive divergences in both RSI and MACD. 3636 support and 3945 resistance are validation levels.
Summer trading is in session and with it lower volume. Thursday was an exception, likely caused by a final round of quarter-end performance adjustments from hedge funds. They're not doing so well this year, but that's true of most investors.
U.S. markets are closed Monday in observance of Independence Day. Unemployment and hourly earnings data are release this week. Otherwise, it should be the calm before the storm, with earnings season starting the week of the 11th.
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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