Mid-Week Stock Market Outlook: The Bulls Are Back In Town

Brandon Van Zee

The S&P 500 (INDEXSP: .INX) finished higher by 0.30% and its intermediate posture according to the Market Forecast technical indicator is once again bullish.

The NASDAQ Composite (INDEXNASDAQ: .IXIC) also attained a bullish posture today, but the Dow Jones Industrial Average and the Russell 2000 continue to have weakly bearish intermediate postures as the stock market has mostly gone nowhere for the last few weeks.

Adding to the meandering feeling of the current market is the fact that none of the four major U.S. equity indices have neither a “3 Green Arrows” signal nor a “3 Red Arrows” signal.

The Russell 2000 remains the only index without a 10-40 week moving average “golden cross”.

The VIX Volatility Index and interest rates continue to be in a steady downtrend.

The falling interest rate environment has led to a robust reaction from Utilities (#1 on the Sector Selector) and Real Estate (#3 on the Sector Selector).

Mid-Week Stock Market Video – March 12, 2019

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

  • The U.S. Dollar remains in a multi-month uptrend but has pulled back for the last few days after receiving a Market Forecast overbought cluster signal
  • Commodities bounced today; gold has been trying to establish support for the last week but now finds itself below a falling 30 day moving average
  • Ag commodities are stuck in a significant downtrend, but some reversion-to-the-mean signs have emerged with an oversold cluster signal last week and a bullish engulfing candlestick pattern today
  • The Indian stock market has ripped higher recently and represents a bullish breakout candidate; meanwhile the Canadian stock market represents more of a bullish bounce candidate
  • Caution is warranted around the Mexican stock market, which remains in an intermediate downtrend despite the last three positive days
  • Interest rate sensitive sectors along with Technology and Communications have been recent bright spots in the U.S.
  • Our trade application example featured selling an iron condor on Amazon (AMZN), which has been stuck in a prolonged sideways move over the last two months 

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.