Market Outlook Turns Cloudy As Stocks Grind Sideways

Stock market futures are currently pointing slightly lower for Wednesday morning trade as the choppy price environment continues… Today’s action follows Tuesday’s day of gains on news that U.S. Factory orders exceeded expectations.

The S&P 500 Index and Dow Jones Industrial Average both closed higher by +0.8%. The S&P 500 continues to trade above its rising 30 day moving average and both of the aforementioned indexes are trading with strongly bullish intermediate postures.

The NASDAQ Composite bounced off its rising 30 day moving average at the Tuesday’s low but closed well off it in positive terriory; it also has a strongly bullish posture

The Russell 2000 continues to lag and carries a weakly bullish posture trading below its falling 30 day moving average.

It’s noteworthy that none of the major U.S. equity indices closed Tuesday with a “3 Green Arrows” signal or a “3 Red Arrows” signal. Momentum has become a bit weaker on most charts.

From a trending perspective, Real Estate, Health Care, and Technology appear to be the strongest sectors of late (according to the WAR Score ranking system).

Elsewhere in the markets…

Bonds remain strong within a downtrending interest rate environment; the 10 Year U.S. Treasury Yield ended near 3 months lows at 1.17% on Tuesday. The U.S. Dollar has been holding steady over recent sessions; gold has strengthened slightly and oil has weakened slightly over that time period. Bitcoin continues to look interesting as a bullish bounce candidate; it has established a bullish intermediate posture and its 30 day moving average is now rising again

Our trade application example featured selling a cash-secured put on Gilead Sciences (GILD) due to its bullish intermediate posture, its bounce up and off the rising 30 day moving average, and its placement from a long term perspective on the dividend stairstep chart (suggesting an attractive current yield)

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

Stock Market Outlook Video (for August 4) – 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.

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