Stock Market Hit By Uneven Earnings, Economic Uncertainty

The S&P 500 Index collapsed by 2.81% on Tuesday as there was almost nowhere to hide for investors. Nearly 95% of the index’s components closing lower.

With the aggressive sell-off, the S&P 500’s intermediate posture is strongly bearish but it stopped short of hitting a 52-week low.

The Dow Jones Industrial Average remains a relative leader, but it hasn’t been immune to selling. It has a weakly bearish posture. The NASDAQ Composite has been hit the hardest. The Nasdaq posted its worst day since September 2020 on Tuesday. It is now down over 20% this year and has a strongly bearish intermediate posture.

The Russell 2000 struggled again and has a strongly bearish posture; both the Russell and NASDAQ closed at 52-week lows.

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The VIX Volatility Index reacted to the extreme selling pressures and ended the day at 33 (it was just at 20 a week ago).

Elsewhere in the financial markets…

The best-looking asset class right now is the U.S. Dollar; it has benefited from a flight-to-safety mindset.

The U.S. 10-Year Treasury yield fell for the third straight day and ended at 2.77%; however, it still has a strongly bullish posture. Crude Oil finished higher by 2% and still has a strongly bullish posture, but its 30 day moving average has started to flat-line. Gold has started to break down recently and is near two-month lows; it was flat (+0.15%) today but has a strongly bearish intermediate posture.

Consumer Staples are now the only sector with a strongly bullish intermediate posture, according to the Market Forecast indicator.

Our trade application example featured selling a put on Comcast (CMCSA) due to its recent sell-off giving it an oversold cluster signal on a weekly candle chart; the put strike price selected would lead to the possibility of acquiring the company with a rare 3% dividend yield

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

Stock Market Outlook Video (for April 27) – News and Analysis

Twitter:  @BrandonVanZee and @MarketScholars

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.