The S&P 500 (SPY) finished lower by 1.23% as a result of a worse-than-expected manufacturing number.
This was the stock market’s worst day since August 23rd and it’s now trading below its 50 day moving average.
All four major U.S. stock market indices continue to have weakly bearish intermediate postures according to the Market Forecast technical indicator.
All four stock market indices also have a “3 Red Arrow” signal, which is often viewed as a time to raise stop losses on long positions.
The Russell 2000 (IWM) sold off the worst today(-1.97%) and is the only major index with its 10 week moving average residing below its 40 week moving average.
The U.S. Dollar has one of the strongest trending charts around, but it did end the day with a bearish engulfing candlestick pattern.
Long-term U.S. Treasuries and gold have somewhat concerning charts with their prices below the 30 day moving average after being strong much of the summer.
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Stock Market Video – October 1, 2019
Consumer Staples and Utilities are the only two sectors that have bullish intermediate postures; they are also the only two trading above rising 30 day moving averages.
Real Estate, Energy, Materials, Industrials, Discretionary, Financials, and Technology all had sharp enough sell-offs today that they closed below their 30 day moving averages.
The Financials sector was hit particularly hard due to news that a major online brokerage company was eliminating trading commissions.
The Sector Selector rankings show Utilities and Real Estate in the top two slots; Staples firmed up and Health Care dropped strongly.
Our trade application example featured buying stock of Altria (MO) due to it having an oversold cluster signal on a monthly chart and also yielding 8% for the first time since the financial crisis.
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