Mid-Week Market Outlook: Will Apple Earnings Revive the Rally?

All four major U.S. stock market indices continue to have strongly bullish Market Forecast intermediate postures along with bullish Market Sentiment postures.

In today’s action, the S&P 500 fell by 0.15% after a weak consumer confidence report, but it retains its strongly bullish intermediate posture.

The NASDAQ Composite lost its “3 Green Arrows” signal today. However, with Apple’s (NASDAQ: AAPL) strong earnings results after the closing bell, it might be able to get its green arrow on the MACD histogram back as soon as tomorrow.

The NASDAQ Composite currently has a Bullish Intermediate Confirmation signal, which occurs when a chart has a bullish intermediate posture combined with a momentum line in the lower reversal zone.

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Earnings season is in full bloom; 3M (MMM) helped support the Dow Jones Industrial Average today on a relative basis and Whirlpool (WHR) had a significant reversal on an intraday basis compared to where it was trading in the premarket.

Gold (GLD) has been breaking out for the last 3 days after showing exceptional resilience for the first part of 2019

Mid-Week Stock Market Video – January 29, 2019

Some additional insights from today’s stock market outlook video:

  • Income producing asset classes like preferred stocks, MLPs, REITs, and bonds mostly have bullish intermediate postures
  • India (EPI) is the only major foreign market with a bearish intermediate posture; its price action has been deteriorating in the last week with a break below an important horizontal support area
  • South Africa (EZA) and Brazil (EWZ) continue to be bullish with prices near 3-month highs
  • The Industrials (XLI) and Materials (XLB) sectors were the leaders today; meanwhile, some of the defensive sectors have been struggling to keep up
  • Our trade application example features a long call vertical spread on an ETF that tracks larger gold mining stocks (GDX)

 

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

Twitter:  @BrandonVanZee and @Market_Scholars 

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.