Mid-Week Stock Market Outlook: Pullback Within An Up-Trend

Brandon Van Zee

The S&P 500 (SPY) finished lower by 0.61% and continues to have a strongly bullish intermediate posture according to the Market Forecast indicator.

All major U.S. stock market indices have strongly bullish intermediate postures and bullish intermediate confirmation signals.

The Dow Jones Industrial Average’s bullish intermediate confirmation signal appears to be the most actionable when taking into consideration the near-term and momentum line placement.

The NASDAQ Composite held up the best on a relative basis falling today by only 0.56%, which is consistent with the outperformance of technology-oriented firms recently.

All U.S. equity indices closed with a “3 Green Arrows” signal but the Russell 2000 still isn’t trading above a rising 30 day moving average.

The Russell 2000 is on the verge of a bullish crossover using the 10 week moving average versus the 40 week moving average but traders will need to wait until Friday’s closing price for confirmation.

Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.

The Sector Selector shows Technology stocks leading the pack for the 4th straight week and the rankings of Discretionary and Communications sectors also bounced higher.

Mid-Week Stock Market Video – April 9, 2019

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

  • The VIX was up 8% today in reaction to the fall in stocks, but it remains near multi-month lows
  • Treasury yields have a bullish intermediate posture for the time being, but it’s important to note that TNX remains below a falling 30 day moving average
  • Gold prices are spiraling; a breakout may be near for traders awaiting a directional signal
  • Crude oil was down slightly today but remains one of the strongest commodity trends around
  • Stocks in Mexico were down today but they broke out of a significant resistance point within the last week and might be gearing up for another move higher; Russian stocks were up today and have a bullish intermediate posture possibly due to strength in oil prices
  • The only sector with a bearish intermediate posture is Utilities 
  • The Communications sector led the markets today and remains in an uptrend with a strongly bullish intermediate posture
  • Our trade application example featured buying a long call spread on Disney (DIS), which was up significantly today on a relative basis and broke out past a key resistance area

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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