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  3. Stock Market Outlook - 2020-11-15

Stock Market Outlook
For The Week Of November 15th = Uptrend

INDICATORS

    ADX Directional Indicators: Uptrend
    Price & Volume Action: Uptrend
    Elliott Wave Analysis: Uptrend

ANALYSIS

The stock market outlook continues in a uptrend to start this week.

Technical analysis of daily SPX prices

2020-11-15-SPX Trendline Analysis - Daily

Prices rose during the week, breaking through the 50-day moving average on higher than average The S&P500 ($SPX) gapped up to all time highs again last week (Monday), taking out the resistance trendline too.

Even though the gap filled and actually closed lower than the open (bearish), prices still managed to rise during the week.

It's not to say there aren't some concerns. The S&P also sits ~12% above the 200-day moving average, which typically means we're in for another correction.

And the EW uptrend signal remains in place.

COMMENTARY

Positive news on the COVID vaccine front supported U.S. stocks last week, as investors chose to focus on the end of the pandemic, rather than the current explosion of cases and hospitalizations. This shift was reflected in sector rotation, as money flowed out of the "stay-at-home" technology names, and into cyclical and value stocks.

Best to your week!




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Charts provided courtesy of stockcharts.com.

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

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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