The S&P 500 Index rallied strongly for the second straight day on Tuesday, as much of the COVID Omicron variant news subsided over the weekend. The 2.07% move in the S&P 500 was the second best day of the past year (the best day since March 1st); 86% of index components closed higher.
The S&P 500 now has a weakly bullish posture for the first time this month and is trading back above its rising 30 day moving average.
The robust move was not isolated to the S&P 500, however. In fact, speculative growth stocks led today’s rally even more than staid blue chips.
The NASDAQ Composite was up 3.03% and it now has a weakly bullish intermediate posture and is trading above its rising 30 day moving average. The Dow Jones Industrial Average was today’s laggard (+1.4%), but it too now has a weakly bullish intermediate posture (despite a falling 30 day moving average).
The Russell 2000 was up 2.28%, but due to extreme recent selling, it continues to have a strongly bearish posture and is underperforming other indices.
Long-term U.S. Treasuries fell 0.81% as money moved from bonds back to stocks; despite the two-day set-back, strongly bullish postures still persist. The 10-Year Treasury Yield rallied to 1.48%; while they are now well off of Friday’s lows, the chart still features a strongly bearish posture.
The U.S. Dollar (+0.04%) was effectively flat on Tuesday, so we didn’t see major movement out of gold (+0.35%). Oil has been a bit more aggressive in the past week; it closed higher by 2% today and has been up 3 of the 4 days since its oversold cluster signal.
Our trade application example featured buying stock in Clearway Energy (CWEN) as a bullish bounce swing trade due to it bouncing up and off its rising 30 day moving average and its Near-Term posture shifting back to bullish.
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Stock Market Outlook Video (for December 8) – News and Analysis
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