Tuesday was a bit of an odd day with Bitcoin and Blue Chips selling off, and the NASDAQ Composite closing higher (and achieving a new all-time high).
The NASDAQ Composite continues to be our market leader. It was the only index to close higher (+0.07%) and has a strongly bullish intermediate posture.
The S&P 500 fell by 0.34%. According to the Market Forecast, it retains its strongly bullish intermediate posture and is trading above its rising 30 day moving average.
The Russell 2000 fell by 0.72%, but still ended the day with a bullish intermediate confirmation signal.
The Dow Jones Industrial Average was the day’s worst performer (-0.76%). It has a weakly bearish intermediate posture and is now trading below its falling 30 day moving average. The Dow Jones Industrial Average has a “3 Red Arrows” signal; the other major indices have “3 Green Arrows” signals.
Interest rates bounced nicely once again Tuesday, with the 10 year U.S. Treasury yield ending at 1.37% (and is still trading above its rising 30 day moving average). Bonds fell again and U.S. Government long bonds (-0.84%) have a bearish intermediate posture and are trading below a falling 30 day moving average.
The U.S. Dollar snapped higher by 0.49%. That said, the Dollar finds itself trading below its falling 30 day moving average and still has a bearish posture.
Bitcoin was one of the day’s big stories. El Salvador became the first nation to accept it as legal tender, but it ended up falling 7% after the enthusiasm died down.
Technology, Communications Services, and Consumer Discretionary were the only sectors that finished higher. Meanwhile, Industrials was the worst performer.
Our trade application example featured buying a long-dated call option on StoneCo (STNE) as a result of it establishing its first oversold clusters using weekly candles since it became a publicly-traded company.
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Stock Market Outlook Video (for September 8) – News and Analysis
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