The U.S. equity markets closed today’s session down across the board but well off the intraday lows.
The S&P 500 (NYSEARCA:SPY) ended the day down 0.55% and its intermediate posture is strongly bearish.
The Russell 2000 (NYSEARCA:IWM) closed down 0.84% and has had a strongly bearish posture for nearly a month straight. Today’s candle, however, does appear to be a “hammer” which could foster a bullish reversal.
All four major stock market indices have their 10 week and 40 week moving averages pinching together; the Russell 2000 is the most likely index to have a bearish crossover first, so stay focused!
Check out our in-depth analysis and trading ideas in today’s video below. See additional bullets and analysis further below today’s video.
Mid-Week market Video – October 23, 2018
Some additional insights from today’s video:
- The VIX Volatility Index (INDEXCBOE:VIX) remained elevated, closing above 20.
- Gold prices hit a 3-month high as traders are fleeing the stocks and bonds.
- Brazil remains one of the only foreign equity markets retaining strength.
- Crude oil prices dropped significantly today, which negatively affected MLPs and Energy sector stocks.
- Real Estate was the leading sector today; Utilities and Staples have been relatively strong in recent weeks.
- Our trade application example today focused on selling a put on Dividend King 3M (MMM) now that its price is nearing a level of significance for yield hunters.
Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.
Twitter:  @BrandonVanZee and @Market_ScholarsÂ
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.
