All four major U.S. stock market indices closed higher today, with the S&P 500 (NYSEARCA: SPY) up +0.54%. All four U.S. indices are trading above rising 30 day moving averages but the NASDAQ (NASDAQ:QQQ) and Russell 2000 (NYSEARCA:IWM) have very little separation and are mostly riding the moving averages higher.
Our mid-week market outlook video focuses on our forecast for the rest of the week, along with highlighting several trade setups developments to watch.
Below is a summary of the video. Please feel free to comment or hit us up with any questions.
– Â The NASDAQ Composite and Russell 2000 have weakly bearish intermediate postures, whereas the S&P 500 and Dow Jones Industrial Average maintain bullish intermediate postures.
– Â Bond yields rallied strongly today with the yield curve now the flattest that its been in several years.
– Â Consumer Staples stocks struggled today based off of a negative reaction to the earnings report from Kraft-Heinz (KHC).
– Â Utilities and Real Estate also struggled today due to their interest rate sensitivity.
– Â Several “risk-on” sectors rallied today including the Industrials, Consumer Discretionary, and Technology because of the news that the additional U.S. trade tariffs on most Chinese imports were going to be 10% rather than the expected 25%.
– Â The Sector Selector tool suggests that the Industrials sector has shown significant positive momentum as their rankings have slowly improved for several months.
– Â Today’s trade application focused on selling a bull put spread on the 20+ Year Bond ETF (TLT) as a reversion-to-the-mean idea based on today’s oversold cluster signal
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.
