Major U.S. Stock Market Indexes Have Bullish Intermediate Postures

Brandon Van Zee

The S&P 500 Index INDEXSP: .INX ended the day near the highs of the session(+1.00%) on the back of excellent corporate earnings announcements.

According to the Market Forecast technical indicator, all major U.S. stock market indices now have bullish intermediate postures.

Only the Russell 2000 Index INDEXRUSSELL: RUT remains below its 30 day moving average; it’s also the only major stock market index with its 10 week moving average currently below its 40 week moving average.

The S&P 500, Dow Jones Industrial Average INDEXDJX: .DJI, and NASDAQ Composite INDEXNASDAQ: .IXIC all have “3 Green Arrow” signals.

All sectors finished higher today except for the Staples and Utilities; those are the only two with bearish intermediate postures as well.

The Health Care sector had the biggest day (+1.82%) due to UNH and JNJ reporting excellent earnings numbers; Discretionary stocks moved up nicely in the most recent edition of the Sector Selector.

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Stock Market Video – October 15, 2019

Additional Market Commentary

The U.S. Dollar, Long Term Treasuries, Gold, and Foreign Bonds have strongly bearish intermediate postures; interest rates rallied and the 10 year Treasury Yield ended at 1.77%.

Foreign developed markets vaulted more than 1% today and are on the verge of a major multi-month break-out to the upside.

Japan and Taiwan could be considered the leadership areas on an individual country basis; meanwhile, Turkey and Saudi Arabia are stuck in downtrends.

Our trade application example featured selling a bull put spread on Booking Holdings (BKNG) which formed a double bottom in the last month and now has a bullish intermediate posture; today’s rally also puts it back above its rising 30 day moving average.

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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.

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