Stock Market Bulls Have Work Cut Out For Them

Brandon Van Zee

After three straight days of gains, the S&P 500 Index NYSEARCA: SPY gave back 0.79% yesterday. But today is looking up again… either way, the bulls still have work to do.

All four major U.S. stock market indices have strongly bearish intermediate postures according to the Market Forecast technical indicator and are trading below their respective downtrending 30 day moving averages.

Additionally, longer-term Market Sentiment postures are currently bearish on all four charts.

All four major U.S. stock market indices have green arrows on the MACD histogram and red arrows on the 30 day moving average and stochastic indicators.

The Russell 2000 NYSEARCA: IWM is the only major U.S. index with a 10-40 weekly “death cross” but hasn’t broken substantial longer-term horizontal support yet.

Treasury bonds were on the upswing and followed the “risk-off” script yet again today; the 10-year U.S. Treasury yield closed at 1.56%.

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Stock Market Video – August 21, 2019

Gold and the U.S. Dollar continue to have bullish postures during a time when many traders view them as safe haven assets.

All major foreign stock markets have bearish intermediate postures and downtrending 30 day moving averages.

Only Real Estate, Utilities, and Consumer Staples have bullish Market Forecast intermediate postures; the Sector Selector also ranks those sectors in the top 3 slots.

Our trade application example featured selling a bear call spread on Johnson & Johnson (JNJ) after it bounced lower from its falling 30 day moving average and produced a bearish Near-Term divergence signal.

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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.