Market Outlook Remains Bullish As Stock Indices Flex Muscle

The S&P 500 Index rallied for the fifth straight session on Tuesday, pushing higher by 0.74%. The index is less than 1% away from an all-time high with things pointing higher into Wednesday morning (futures).

The S&P 500 Index has a strongly bullish intermediate Market Forecast posture; it’s currently trading above its falling 30 day moving average.

Turning to other stock market indices, the Dow Jones Industrial Average has become the intermediate term leader in the past week. It has a strongly bullish posture and is above its rising 30 day moving average. The NASDAQ Composite and Russell 2000 also finished higher on Tuesday.

All four major U.S. stock market indices have a “3 Green Arrows” signal.

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Looking across the financial markets, Bitcoin has a strongly bullish intermediate posture and is near all-time highs ($64K). It rallied 4% on Tuesday while a new futures-based Bitcoin ETF (BITO) was launched.

Interest rates rallied again and are once again at multi-month highs; the 10 Year Treasury Yield ended at 1.63%.

Long Term Treasury bonds fell 1.38% after making a counter-trend move last week after their oversold cluster signals; they have a strongly bearish posture.

Oil prices hit multi-year highs and continue to have a strongly bullish intermediate posture after the U.S. Dollar fell to its lowest level in a couple weeks. Energy and Financials continue to occupy the top two slots on the Sector Selector; Consumer Staples replaced Utilities on the bottom.

All eleven market cap-weighted sectors currently have bullish intermediate postures

Our trade application example featured selling a put on Kimberly Clark (KMB) due to it selling off earlier in the day along with other Household Products stocks and is now nearing an attractive point of interest for long-term dividend investors (based upon the Average High Yield theory)

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

Stock Market Outlook Video (for October 20) – 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.