Stock Market Outlook: Turbulence This Week Before Year-End Rally?

us stock market index analysis investing outlook news - week november 11

This week, the S&P 500 Index INDEXSP: .INX near-term line stayed above the chart’s midpoint (now for 22 days) – this is well beyond its normal range and longest since July 2016. This pattern may lead to shorter and more frequent near-term runs in the upcoming week or two.

After the prior week’s Heikin Ashi breakout pattern occurred on the S&P 500, all of the other major stock market indexes showed their own weekly Heikin Ashi breakout patterns this past week.

The rubber band remains stretched with the four-week range flirting with 5% of the high. This will limit upside moves – if not in direction, in magnitude.

Summary: The posture remains strongly bullish with all the major indexes now showing strong bullish intermediate postures combined with rising six-week moving averages and rising Market Sentiment lines above the chart’s midpoint.

Sign up for our FREE newsletter
and receive our best trading ideas and research



The Russell 2000 and NASDAQ Composite have shown near-term pullbacks lately where the S&P 500 has not. This divergence suggests there may be an exhale coming this week that brings all four charts back in short-term alignment before the bullish intermediate run re-engages and targets the end of the year.

Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.

Stock Market Video – for week of November 11, 2019

Twitter:  @davidsettle42  and  @Market_Scholars

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.