Market Outlook: Equity Bulls Remain Resilient

The S&P 500 Index rallied (+0.18%) on Tuesday for the ninth time in the last ten sessions, while hitting a new all-time high. That said, the stock market faded late in the day and the index closed well off of its intraday highs.

The S&P 500 still has a strongly bullish intermediate Market Forecast posture and is trading above its rising 30 day moving average.

On the flip side… Despite a positive performance from a market cap-weighted perspective, more stocks within the S&P 500 closed lower than higher on Tuesday.

The Dow Jones Industrial Average (+0.04%) hit an all-time high and has a strongly bullish posture. The NASDAQ (+0.06%) narrowly missed a record high but also has a strongly bullish intermediate posture and is trading above its rising 30 day moving average.

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The Russell 2000 was Tuesday’s clear laggard (-0.72%), but it did touch a multi-month high in the morning and closed with a bullish intermediate confirmation signal. That said, all four major U.S. equity indices have a “3 Green Arrows” signal.

Interest rates slid for the third straight day while the 10 Year Treasury Yield ended at 1.61% and remains in an intermediate uptrend.

The U.S. Dollar (+0.20%) had a nice bounce up and off of its rising 30 day moving average; it has a strongly bullish intermediate posture.

Gold sold off 0.74% and has had difficulty overtaking its prior highs, but it continues to have a bullish intermediate posture for the time-being. Crude Oil continues its relentless march higher; it advanced by over 1% today and is at multi-month closing highs with a strongly bullish posture

Energy and Financials continue to lead on the Sector Selector; Communications made a big drop lower.

Our trade application example featured buying an India-focused ETF (EPI) as a swing trade due to its bullish Near-Term divergence and its bounce up and off of its rising 30 day moving average

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

Stock Market Outlook Video (for October 27) – News and Analysis

Twitter:  @BrandonVanZee and @MarketScholars

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.