Stock Market Outlook - Jan 17, 2016

Stock Market Outlook entering the Week of January 17th = Downtrend

MOVING AVERAGES

Short-term (20 DMA): Downtrend
All the major stock market averages remained below their 20-day moving averages.

Intermediate (50 DMA): Downtrend
All the major stock market averages remained below their 50-day moving averages.

Long-term (200 DMA): Downtrend
All the major stock market averages remained below their 200-day moving averages.

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2016-01-17 - US Stock Market Averages

COMMENTARY

Another volatile week in US equities, continuing the sell-off that rang in the new year.

Price/volume action was awful. The fledgling uptrend that started two weeks ago had no chance.

OEW called an end to the 2009 bull market, citing last week's fall through various technical support levels and closing below the August lows (S&P500).

In a bear market, your objectives flip-flop; instead of "buy the dips", it's time to "sell strength".

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For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro.Charts courtesy of StockCharts.com.

Moving Average Signals:

Uptrend = Market indexes remained above their moving average during the trading week

Downtrend = Market indexes remained below their moving average during the trading week

Buy signal = Market indexes rose above their moving averages during the trading week

Sell signal = Market indexes fell below their moving averages during the trading week