Stock Market Eyes New Highs On Fed, Trade Deal Hopes

Brandon Van Zee

The U.S. stock market responded strongly to the news that U.S. President Trump and China President Xi will have an extended meeting at the G-20 later this month. The S&P 500 Index (NYSEARCA: SPY) closed higher by 0.97%.

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

The Russell 2000 Index’s (NYSEARCA: IWM) posture is considered weakly bullish rather than strongly bullish like the others

All four major U.S. stock market indices have a “3 Green Arrows” signal; but the Russell 2000’s signal is the most precarious because it is hovering just barely above its 30 day moving average

Despite another strong day from the U.S. Dollar, gold and oil popped higher

Real Estate Investment Trusts had a fairly ugly reversal day after becoming a bit extended in recent weeks

Russia appears to have one of the strongest current stock market trends; it bottomed a couple of weeks before most stocks in May and appears to be a new leadership area

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

Mid-Week Stock Market Video – June 18, 2019

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

– The defensive and interest rate sensitive sectors of Real Estate, Utilities, and Staples closed lower today despite the broad market rally; perhaps that’s a sign that traders expect a bit more hawkish commentary on a relative basis out of the Fed tomorrow than they may have been expecting a week ago.

– From a ratio chart perspective, stocks are outperforming commodities, U.S. stocks are outperforming foreign stocks, and growth stocks are outperforming value stocks.

– Our trade application example featured selling a bear call spread on Etsy Inc (ETSY); it reversed lower near a strong horizontal resistance area and now has a bearish intermediate posture.

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.