Mid-Week Market Outlook (September 4): Mind Your Trading Timeframes

Our mid-week market outlook video focuses on our forecast for the rest of the week, along with highlighting several interesting trade setups.

Below is a summary of the video. Please feel free to comment or hit us up with any questions.

All four U.S. stock market indices fell today; the S&P 500® (NYSEARCA:SPY) was down 0.17%. Although the short-term looks bumpy, it’s notable that all four U.S. indices continue to have bullish intermediate postures and rising Market Sentiment values. Here’s more insights:

–  The Russell 2000® (NYSEARCA:IWM) is showing a potential hanging man candlestick formation and while that would be considered a negative, it does need to be confirmed with further downside action in the short-term.

–  All four U.S. indices show longer term strength with their 10 week moving averages trading above their 40 week moving averages

–  From an intermarket analysis perspective, the story of the day seemed to be the spike in interest rates, which positively affected the Financials sector and negatively affected the Real Estate sector

–  Foreign stock markets were mostly in the red today due to the rallying U.S. Dollar; South Africa has been struggling recently as gold prices have trended lower

–  Utility stocks were mostly positive today, buoyed by positive news out of California regarding the liabilities of that state’s utilities regarding wildfires from a couple years ago

–  Today’s bullish trade application taps into the strength in the Financials with a struggling Dividend Growth Investing stock (BEN) that is approaching a key yield hurdle

 

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.

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