The S&P 500 (NYSEARCA: SPY) edged higher by 0.01% today but continues to have a strongly bearish intermediate posture according to our Market Forecast indicator.
All four major U.S. stock market indices closed with oversold Market Forecast cluster signals, which is the first time that’s occurred in several months.
This could be hinting at a coming bounce short-term.
The Dow Jones Industrial Average (NYSEARCA: DIA) was up 0.35% and helped along by Boeing’s strong day after it announced a 20% dividend increase.
The Russell 2000 (NYSEARCA: IWM) wasn’t able to participate in today’s rally and closed lower by 0.07%.
All four major U.S. equity indices have strongly bearish intermediate postures, “3 Red Arrows” signals, and death crosses.
Mid-Week market Video – December 18, 2018
Some additional insights from today’s stock market outlook video:
- Bonds were up and yields were down today in front of tomorrow’s interest rate decision from the Fed.
- Crude oil plunged nearly 8%; while gold was slightly higher.
- Most foreign stock markets are struggling, but India is a rare bright spot.
- According to the Sector Selector, Utilities, Real Estate, and Consumer Staples have more relative strength than Materials, Industrials and Energy, suggesting defensive positioning.
- Our trade application example focused on selling a bear call spread on ILMN, which is part of the recently-deteriorating Health Care sector.
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.
