Mid-Week Stock Market Outlook: Bulls Bring The Heat

Brandon Van Zee

The S&P 500 (NYSEARCA: SPY) rose by 1.29% and retains its strongly bullish intermediate posture.

The avoidance of another government shutdown along with a more positive tone towards a trade deal with China has provided stocks with a bullish push.

All four major U.S. stock market indices continue to have strongly bullish Market Forecast intermediate postures and bullish Market Sentiment postures.

The Russell 2000 (NYSEARCA: IWM) now has a “3 Green Arrows” signal on a daily candle chart due to its MACD Histogram passing up through the zero line.

All four charts continue to trade with a bearish 10-40 week moving average crossover, but the price of the S&P 500 is now trading above the 40 week moving average (equivalent to the 200 day moving average).

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The U.S. Dollar has formed a series of higher highs and higher lows, which has negatively impacted agriculture commodities and some foreign stock markets.

Mid-Week Stock Market Video – February 12, 2019

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

  • Income-related assets like MLPs, preferred stocks, and REITs have gained strength with interest rates struggling recently.
  • Due to a strong U.S. Dollar and stabilizing oil prices, stocks in India and Japan have struggled on a relative basis.
  • Benefiting from promising trade news, the Materials sector was up the most today despite lagging somewhat on an intermediate basis.
  • Our trade application example featured a Buy Stop One Cancels Other order on Kinder Morgan (KMI) due to its excellent relative strength versus the Energy sector, in addition to a recent significant stock purchase from its founder.

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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.