Weekend Stock Market Outlook

Stock Market Outlook For The Week of
May 15th = Downtrend

MOVING AVERAGES

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

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

Long-term (200 DMA): Mixed
3 of the 5 major stock market averages remained above their 200-day moving averages.

2016-05-15 - US Stock Market Averages

COMMENTARY

Maybe there is some truth in the old adage "sell in May and go away". Last weeks selling pressure continued to weaken the markets, moving the outlook from "mixed" to "downtrend".

The NYSE, Russell 200, DJIA, and S&P500 all pierced their 50-day moving averages, and price/volume action added a few more distribution days to the count. OEW shows that the DJIA joined the NASDAQ in a confirmed downtrend, although the S&P is still unconfirmed.

Whatever you do, don't let potential gains turn into losses!

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For the detailed Elliott Wave Analysis, go to the ELLIOTT WAVE lives on by Tony Caldaro. Charts provided 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