Mid-Week Stock Market Outlook: Bulls and Bears Await Elections

Brandon Van Zee

U.S. equity markets rallied and closed near their session highs going into the midterm elections tonight.

The elections are seen by many to be a catalyst for the next move, but remember that the Federal Reserve is right around the corner…

Perhaps its best to simply focus on the price action and our trading indicators.

The S&P 500 (NYSEARCA:SPY) was up 0.63% and its intermediate posture continues to be weakly bullish; all four major U.S. equity indices are showing similar patterns and postures.

The Dow Jones Industrial Average (NYSEARCA:DIA) will be the first key index to test the downward trending 30 day moving average as soon as tomorrow.

Should be an interesting trading session on Wednesday… and into the end of the week.

Mid-Week market Video – November 6, 2018

Some additional insights from today’s video:

  • Crude oil continues to struggle with a strongly bearish posture; it was down over 2% today
  • The U.S. Dollar fell slightly today but remains in an uptrend, which has helped to pressure oil prices
  • Most major foreign stock markets now have an intermediate bullish posture; Brazil and Russia appear to be have the best relative strength
  • Ten of the eleven U.S. sectors have a bullish posture, the only exception is Utilities which is also very close to also attaining a bullish posture
  • Our trade application example focused managing a long call trade on Starbucks (SBUX) that we did on the video a few months ago; we locked in our gains and eliminated our future risk by rolling to a different strike to continue to benefit if the stock stays in an uptrend

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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