The U.S. stock market bounded back strongly across the board on Tuesday as volatility paused.
The S&P 500 (NYSEARCA:SPY) closed higher by 1.57%, perhaps a sign that the market is finding some footing.
That said, the S&P 500’s intermediate posture is strongly bearish similar to the other three major U.S. equity indices.
The small cap Russell 2000 (NYSEARCA:IWM) had the biggest day of the 4 major stock indices, closing up 1.99%.
It’s also worth noting the U.S. Dollar strength. The buck hit a three month high, pressuring commodity prices.
Mid-Week market Video – October 30, 2018
Some additional insights from today’s video:
- The VIX was down today, but not significantly, which left traders wondering if more selling pressure is on the way until a capitulation point.
- Brazil remains the standout from an international perspective and retains a bullish posture; Mexico and South Africa are down nearly 20% in the last three months.
- Consumer Staples hit a three month high today; cyclical sectors bounced today but remain bullish in the intermediate term.
- Facebook reported after the bell and the stock was volatile; traders were relieved that it didn’t implode like it did on its last earnings announcement.
- Our trade application example today focused on selling a bear call spread on Skyworks Solutions (SWKS), which continues to be in a downtrend with a bearish posture despite today’s rally.
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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.
