A strong push higher by Chinese stocks helped propel select U.S. stock market indexes into record-breaking territory on Tuesday. And the futures markets are pointing higher again into Wednesday.
The S&P 500 Index finished higher by 0.15% on Tuesday, achieving an all-time high for the 50th time this year. The Index continues to have a strongly bullish posture.
The Dow Jones Industrial Average finished slightly higher and is back to a strongly bullish intermediate posture according to the Market Forecast indicator.
The NASDAQ Composite had a big day. The strongly bullish index rose 0.52% and closed above 15,000 for the first time in its history
The Russell 2000 rose the most (+1.02%), but unlike the other stock indices, its posture is only weakly bullish (it has a declining 30 day moving average).
This was a “risk-on” day where the cyclicals easily outpaced the non-cyclicals, which was a change from last week’s tone.
Government bonds (-0.78%) followed defensive sectors lower; high-yield bonds (+0.14%) followed oil prices higher. Emerging market stocks (+2.27%) were led higher by Chinese internet names, but that wasn’t enough to resolve the strongly bearish posture quite yet. Crude Oil (+3.32%) and gold (-0.05%) both now have bullish intermediate postures, but neither of their trends look particularly appetizing yet.
Bitcoin sold off just over 1% today, but after a furious rally in recent weeks, it might be just digesting gains and continues to be strongly bullish
Following oil prices, Energy was the biggest sector advancer today with a move of 1.66%; however, it still has a strongly bearish intermediate posture
Our trade application example featured buying a bull call spread on DraftKings Inc (DKNG) due to its bullish breakout from a multi-month reversal pattern, in addition to achieving a “5 Green Arrows” signal after today’s bounce higher
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