Mid-Week Market Outlook: Bears On Parade

Brandon Van Zee

U.S. equity markets were mostly weaker today and all four major U.S. equity markets continue to have bearish intermediate postures according to the Market Forecast indicator.

The S&P 500 (NYSEARCA: SPY) was down 0.14% and its intermediate posture changed to strongly bearish.

The NASDAQ (NASDAQ: QQQ) broke its losing streak, but only managed a 0.04% gain which left the candle with a long upper shadow. The Tech Index continues to have a strongly bearish posture.

The Russell 2000 (NYSEARCA: IWM) was down 0.47% today and continues to have a strongly bearish posture. Today, it generated its first oversold cluster signal in several months.

The Dow Jones Industrial Average (NYSEARCA: DIA) was down 0.21% today and has a weakly bearish posture; it’s the only index trading above a rising 30 day moving average.

Check out our in-depth analysis and trading ideas in today’s video below. See additional bullets and analysis further below today’s video.

Some additional bullets from this week’s Weekend Market Outlook video:

–  Agriculture commodities and MLPs are relatively strong.

–  Interest rates pulled back today and the U.S. Dollar finished with a bearish engulfing candlestick pattern.

–  Brazil equity markets hit a 3 month high today; meanwhile, Germany hit a 3 month low

–  Safe haven sectors like Utilities and Staples have bullish postures, but most cyclical sectors are struggling with bearish postures.

–  Our trade application example today focused on selling a put on Illinois Tool Works (ITW) now that its dividend yield is getting closer to historically-attractive levels.


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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.