Stock Market Indexes Waver But Bulls Still In Charge

The S&P 500 Index struggled Tuesday, closing down 0.35%. This marked only the third day of selling in the last twenty sessions. Note that the body of Tuesday’s candle bearishly engulfed the two prior bodies… and today’s futures are pointing lower.

The Dow Jones Industrial Average (-0.31%), NASDAQ Composite (-0.60%), and Russell 2000 (-0.63%) all closed lower on Tuesday as well and are looking mixed to down this morning.

That said, all four major U.S. equity indices continue to have strongly bullish intermediate postures and are trading above their respective 30-day moving averages. As well, all four major U.S. equity indices continue to have a “3 Green Arrows” signal despite Tuesday’s minor sell-off.

Interest rates fell for their third time in the last four sessions; the 10 Year Treasury Yield ended at their 6-week low of 1.43% and are considered strongly bearish. Bonds rose across the board with Long-Term U.S. Treasuries leading the way (+1.30%); they are near 3-month highs have a strongly bullish intermediate posture.

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The U.S. Dollar sold off 0.12%; it is trading slightly below their rising 30-day moving average and has a weakly bearish intermediate posture.

Commodities rallied in response to the falling Dollar; gold (+0.49%) is now near 3-month highs and oil (+1.54%) is bouncing up and off its rising 30 day moving average.

Bitcoin was flat today and has a strongly bullish posture, but Coinbase (COIN) reported earnings afterhours and fell significantly so cryptocurrencies could be in focus tomorrow.

Our trade application example featured selling a bear call spread on Mastercard (MA) due to it rolling over at its falling 30 day moving average and its newly-acquired bearish Near-Term posture

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

Stock Market Outlook Video (for November 10) – 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.