Can Nasdaq Restore Order To 2021 Bull Market?

The S&P 500 Index achieved a new all-time intraday high, but then ended Tuesday’s session with a slight -0.16% drop. The Dow Jones Industrial Average fell -0.39% and the Russell 2000 fell -1.72%.

The NASDAQ Composite was the only major U.S. equity index to close in the green (+0.09%); its intermediate posture joined the other stock market indices at strongly bullish.

The NASDAQ Composite is also the only major index to not quite produce a “3 Green Arrows” signal; that will come as soon as tomorrow with a positive session.

All four major stock market indices have golden crosses on the 10/40 weekly crossover method; the NASDAQ’s is the weakest and the Dow Jones’ is the strongest.

The U.S. Dollar and Long Term U.S. Treasuries are the only two major assets with a bearish intermediate posture; gold remains below a falling 30 day moving average.

Oil and Bitcoin have been so strong that neither has touched the 30 day moving average over the past 3 months. Emerging markets still look relatively weak versus their U.S. and foreign developed market counterparts.

All eleven sectors currently have a strongly bullish intermediate posture; Communications and Real Estate have been impressive over the past week. Energy was down the most today and struggled yesterday as well.

Our trade application example featured a bullish swing trade on Dorman Products (DORM) after it ended its 5-day sell-off with a CAHOLD pattern with its series of higher highs and higher lows still intact.

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

Stock Market Video – News, Analysis & Insights for March 16

Twitter:  @BrandonVanZee 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.

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