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Weekly Market Overview - 14/28/2020

Weekly Stock Market Overview
(April 17, 2020)

It was a second consecutive positive week for the S&P 500 (^GSPC). During the week, the ^GSPC gained 84.74 points, or 3.04%, and closed at 2874.56 on Friday, April 17, 2020. ^GSPC was trading at an average weekly trading volume.

S&P 500 Trend Analysis:

The S&P 500 weekly uptrend had started on March 23, 2020 at 2,191.86 and reached 2,879.22 on April 17, 2020, making a 31.36% gain in eighteen business days.

Weekly uptrend has formed a Rising Wedge chart pattern. The Rising Wedge in downtrend is considered as a continuation pattern, and it indicates that the monthly downtrend is not over yet. It is usually followed by the next downtrend sub-wave.

^GSPC: S&P 500
Chart: S&P 500 Rising Wedge chart pattern


In our previous S&P 500 Trend Analysis, published on April 10, 2020, we suggested:

C wave might be tricky. According to Elliott Wave theory the advancing C wave within upward correction in larger bear markets are just as dynamic and can be mistaken for the start of a new upswing. If C wave advance above 2792.69 50% Fibonacci retracement level, the 50 Day Moving Average will be the next resistance level (currently 2909.56). At this point, it would be a good idea to reduce the risk and use some stop losses techniques... Considering the high risk of the trend reversal, we recommend to use the Parabolic SAR technique to identify the exit points.

The latest Parabolic SAR buy signal was generated on March 24th when S&P 500 closed at 2447.33 above Parabolic SAR (2189.668). The current Parabolic SAR value is 2763.89 that is already 11.45% higher than the March 24th buy price.

^GSPC: S&P 500
Chart: S&P 500 Parabolic SAR signals

The ^GSPC price is now near the 50 Day Moving Average support level. The weekly volatility was 193% above average. The daily Lane's Stochastic and Williams' Percentage Range (W%R) are strongly overbought. Daily Moving Average Convergence Divergence (MACD) has bearish divergence.

^GSPC: S&P 500
Chart: 50 Day Moving Average


More than 34% of S&P 500 component stocks have the daily Williams' Percentage Range (W%R) strongly overbought. It is the highest level since January 18, 2019. Almost 16% of S&P 500 component stocks have daily MACD bearish divergence. It is the highest level since February 22, 2019 - the beginning of the downtrend wave. Taking into consideration the above trend analysis and bearish technical indicators, there is a high probability that the weekly uptrend might be over soon.

S&P 500 Sector Rotation

The Health Care sector was the strongest sector last week (6.27%), followed by the Consumer Discretionary sector (5.86%). The Financial sector was the worst performing sector of the week (-4.23%), followed by the Materials sector (-2.26%).

The Health Care sector is the most overvalued sector, followed by Consumer Staples, while Hypermarkets & Super Centers, Biotechnology, and Managed Health Care are among the most overvalued industries. The Energy sector is the most oversold sector, followed by Financials, while Oil & Gas Drilling, Oil & Gas Equipment & Services, and Diversified Banks are among the most oversold industries.

Bear market correction can be mistaken for the start of a new upswing.
Weekly uptrend has formed a Rising Wedge chart pattern. The Rising Wedge in downtrend indicates that higher level downtrend is not over yet.
Apr 17, 2020
Reduce the risk and use some stop losses techniques
S&P 500 Elliot Wave's cycle consists of eight waves; the five-wave motive phase followed by three-wave corrective phase.
Apr 12, 2020
The Best Trading Strategies for the Trending Market
S&P 500 Elliot Waves Analysis: falling channel has a five sub-waves impulse structure.
Mar 22, 2020
S&P 500 Bearish Trend Analysis
What to expect if the S&P breaks the long term rising channel support trendline.
Mar 14, 2020
S&P 500 Rising Wedge Breakdown
The S&P 500 intermediate trend Rising Wedge breakdown caused the biggest weekly loss since October 2008.
Mar 1 , 2020
NASDAQ biggest weekly advance
It was the biggest weekly NASDAQ advance recorded. More than 30% of S&P members are trading at their highest price in the past 52 weeks.
Jan 7 , 2018
Eighth consecutive positive week
It was the eighth consecutive positive week for S&P 500 index. More than 40% of S&P 500 component stocks have overbought weekly Lane's Stochastic. It is the highest level since April 29, 2016.
Nov 5 , 2017
ETF's Currency Shares Alert.
CurrencyShares Swedish Krona Trust (FXS) weekly downtrend reached 116.62 on September 27, making the biggest weekly drop since October 2015.
Sep 24, 2017
Dow Jones Industrial Average monthly uptrend - five-wave structure.
The Dow Jones Industrial Average monthly uptrend has formed a five-wave structure. It started on April 19, 2017 at 20,379.55 and reached 22,419.51 on September 21, 2017.
Sep 24, 2017
Sixth consecutive positive week for the S&P 500.
Almost 56% of S&P 500 component stocks have overbought weekly Williams' Percentage Range. It is the highest level since December 26, 2014.
Mar 5 , 2017
Third consecutive negative week for the Dow Jones
Almost 40% of S&P 500 component stocks have oversold daily Lane's Stochastic. It is a highest level since November 16, 2012.
Mar 15, 2015
Dow Jones is near 200 Day Moving Average
During the past week, Dow Jones Industrial Average sank 507.65 points or 2.87%, to 17164.95. Williams' Percentage Range and Lane's Stochastic are overbought in a monthly time frame. The Dow Jones price is near 200 Day Moving Average.
Feb 1 , 2015
S&P 500 at highest level since Oct 2007
The major indices and more than a half of S&P 500 members are strongly overbought in daily, weekly, and monthly time frames.
Mar 17, 2013
S&P 500 members Downtrend Resistance Alert
Dow Jones, NASDAQ, and More than 40% of S&P 500 members have the Downtrend Resistance Alert.
Oct 30, 2011
The short-term rally is over
S&P 500 index may break the support around 1100 and move down to the next support area around 1000 - 950.
Sep 5 , 2011
S&P 500 is close to the 50 Day Moving Average
S&P 500 index has fallen below the Parabolic SAR (stop and reversal). Price is close to the 50 Day Moving Average.
Mar 13, 2011
S&P 500 index wave's structure
S&P 500 medium-term uptrend has a five wave's structure. The fifth sub wave is near completion.
Dec 26, 2010
Monthly W%R is strongly overbought for the first time since October 2007
The S&P 500 technical indicators are pretty close to the beginning of October 2007, just a week prior the beginning of the bear market of 2007-2009.
Oct 17, 2010
More than a half of S&P 500 members are overbought
More than 10% of S&P 500 index members made a new 52-week high, but almost a half of them closed this week below the previous week's close.
Sep 12, 2010
S&P 500 members - Trend Support Alert
Daily and weekly indicators are oversold for all three major US indices. More than 28% of S&P members are oversold, and more than 22% have a Trend Support Alert.
Jul 4 , 2010
S&P 500 members - Downtrend Resistance alert
More than 60 S&P members have the Downtrend Resistance Alert. Daily Williams' Percentage Range and Lane's Stochastic are strongly overbought.
Jun 20, 2010
S&P 500 members - uptrend support alert
More than 30% of S&P 500 members have an uptrend support alert. This alert indicates that stock price is near the monthly uptrend support level.
May 23, 2010
Dow Jones Elliott Wave count
Dow Jones gained 68.03% in 53 weeks. The chart has formed a Rising Channel chart pattern. Fifth wave up is in progress.
Mar 21, 2010
NASDAQ at the highest level since September 2008
NASDAQ medium-term trend has formed a five-wave structure. The fifth wave is in progress now. The price is near the trend resistance line (2331.43).
Mar 5 , 2010
Is Dow Jones going above January high soon?
Dow Jones has advanced above the 50 Day Moving Average. MACD line has moved above its signal line. Both crossovers are considered as bullish signals.
Feb 19, 2010
The Dow Jones has formed a falling channel pattern
The Dow Jones lost 932.06 points, or 8.66%, since January 14. The downtrend has formed a falling channel pattern.
Feb 7 , 2010
The Dow Jones short-term down trend is near the support line
The Dow Jones is near the support line. Daily technical indicators are oversold. Almost 20% of S&P 500 members have an uptrend support alert.
Jan 31, 2010
S&P 500 has crossed below the 50 Day Moving Average
S&P MACD line has moved below its signal line; the price has crossed below the 50 Day MA and has closed below the lower Bollinger Band.
Jan 24, 2010
The Christmas rally has pushed the stocks ahead
The trend following indicators have turned bullish, while almost 20% of S&P 500 members are overbought.
Dec 25, 2009

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Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.

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