Market bears finally showed up late in the week and brought some selling. But not before the S&P 500 and Nasdaq closed the week higher.
In this week’s “Weekend Market Outlook” we will discuss several topics, including the potential for weakness into mid-September. Below is a summary of what’s in the video below. Please feel free to comment or hit us up with any questions.
Market Outlook & Video (September 1):
– Another aborted near-term run (less than 7-12 days) suggests we’re nearing the end of the current intermediate rally.
– S&P 500’s weekly chart shows another longer upper shadow on its candle. The weekly market forecast suggests there could be a week or two of weakness ahead. But, despite, that the monthly chart aligns with expectations that stocks could be higher into the end of the year and into Q1.
– High position above the 50-day MA and 200-day MA also suggest that – at best – we’ll start grinding higher a lot more slowly than we did even this week.
– High MACD and Stochastic %d positioning also suggest next week may only see slightly higher highs.
– Still have strong bullish positioning on intraday chart, with trading ranges and volatility.
– Weakening economic indicators puts pressure on yields.
– Avoiding a second consecutive day of EM weakness helps from contagion spreading with today’s weakness in Europe instead.
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.