Stock Market Outlook
For The Week Of March 28th = Uptrend

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

2021-03-28-SPX Trendline Analysis - Daily

The S&P500 ($SPX) trended lower for most of the week, before snapping finding support at the rising trendline and the 50-day moving average and snapping back sharply on Thursday and Friday.

The ADX still shows bearish price action in control, while two distribution days fell off the count, and one was added. Friday’s action qualified as a follow-through day, so the price/volume signal switches to an uptrend with two asterisks.

Asterisk #1: The number of distribution days is very high, especially considering this rally is just getting started.

Asterisk #2: The follow-through day occurred outside the 10-day window that you’d typically like to see a strong follow-through.

2021-03-28-SPX Elliott Wave Analysis - Daily - Primary 1

The Elliott Wave count shows the S&P is now two waves into a Minor 5.

COMMENTARY

The Elliott Wave count shows the S&P is now two waves into a Minor 5.

One interesting note from the stock market was that as of Friday's close, the S&P500 has risen ~81% from the market low on March 23, 2020! That's an amazing 1 year return!

Best to Your Week!

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Charts provided courtesy of stockcharts.com.

For historical Elliott Wave Analysis, go to ELLIOTT WAVE lives on by Tony Caldaro. Other interpretations can be found at: Pretzel Logic, and 12345ABCDEWXYZ

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.

• 2015 Performance - Stock Market Outlook
• 2016 Performance - Stock Market Outlook
• 2017 Performance - Stock Market Outlook
• 2018 Performance - Stock Market Outlook
• 2019 Performance - Stock Market Outlook
• 2020 Performance - Stock Market Outlook

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