Weekend Stock Market Outlook

Stock Market Outlook For The Week of
January 14th = Uptrend

INDICATORS

20/50 Day Moving Averages: Uptrend
Price & Volume Action: Uptrend
Objective Elliott Wave Analysis: Uptrend

COMMENTARY

U.S. markets continue their uptrend into the third week of 2018.

All the market indexes remain above their 20 and 50 day moving averages.

$INDU,$NYA,$SPX,$USD,$COMPQ,$CRB,$RUT,$GOLD

2018-01-14-US Stock Market Averages

Price and volume action remains positive, so the uptrend signal remains in place. A few stocks even broke out of 6-week bases last week! On the downside, several leaders are in late stage bases (i.e. their trying to breakout successfully for the 3rd or 4th time).

Tony returns after a few week hiatus, and the OEW uptrend remains in place.

I received a few emails last week, wondering why I was so down on investing in stocks given that we are in an uptrend. Quite the opposite, I'm really positive on stocks; it's just hard to find stocks that meet my growth investing or income investing criteria.

My concern was the typical investor reaction to scarcity. When investing opportunities are in short supply, investors tend to get impatient, and "adjust" their criteria (increasing the risk of loss) so that there are more opportunities, rather than waiting patiently for conditions to improve.

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You can check out how well (or poorly) the outlook has tracked the market using past performance estimates:

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