Mid-Week Stock Market Outlook: Investors Eye US Dollar

The S&P 500 had another day of sideways price action, ultimately finishing lower by just 0.11%.

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

However, it is worth noting that the Dow Jones Industrial Average and the Russell 2000 are inching towards a potential weakly bearish posture as their intermediate lines are getting close to falling out of the upper reversal zone.

None of the four major U.S. stock market indices currently have a “3 Green Arrows” signal nor a “3 Red Arrows” signal. However, it’s worth noting that the Dow Jones Industrial Average and Russell 2000 both picked up an additional Red Arrow on the Stochastic indicator.

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The Russell 2000 finished the day with a bullish intermediate confirmation signal, but from a longer-term perspective, it’s the only major U.S. equity index without a “golden cross” when using the 10 week exponential moving average versus the 40 week exponential moving average.

The U.S. Dollar bounced higher for the fifth straight day and finds itself at a horizontal resistance point with the expectation that resistance will ultimately be broken to continue the pattern of higher highs and higher lows that was established at the beginning of 2019.

Mid-Week Stock Market Video – March 5, 2019

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

  • Income-oriented securities outperformed on a relative basis today as interest rates took a breather from their upward surge late last week
  • Chinese stocks are among the hottest on the planet right now and continue to be in an uptrend with a bullish intermediate posture
  • Stocks in Mexico have fallen every day for the last week and a half; as expected, the intermediate posture is bearish but there is the possibility of a bounce from a horizontal support area where it currently resides
  • Health Care stocks now have a bearish intermediate posture; many stocks in that sector were affected today by the news of the unexpected resignation of the FDA chief
  • Our trade application example focused on the theme of Chinese internet stocks that have seen significant gains recently; we bought shares of KWEB, which is an ETF that tracks that theme and set a price target and stop loss to include with the order

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.