It was a split market on Tuesday with the S&P 500 Index (-0.21%) and Dow Jones Industrial Average (-0.67%) falling, and the NASDAQ Composite (+0.51%) and Russell 2000 (+0.99%) rising.
The Russell 2000 and NASDAQ Composite are both trading all-time highs, but it’s worth noting that the NASDAQ Composite recording an overbought cluster signal.
All intermediate postures on the U.S. stock market indices continue to be strongly bullish according to the Market Forecast technical indicator. As well, all four major U.S. stock market indices have bullish 10/40 weekly moving average crossovers. The Market Forecast intermediate postures continue to flash “strongly bullish” on all four major U.S. equity indices.
All four major indices have bullish 10/40 weekly moving average crossovers, and the NASDAQ Composite and Russell 2000 have fresh “3 Green Arrows” signals. The Dow Jones Industrial Average achieved a new record closing high (but narrowly missed an all-time high on an intraday basis).
The U.S. Dollar had a strong day, but remains in a strongly bearish intermediate posture; commodities reflect the opposite (weak today, but with bullish intermediate postures).
The U.S. stock market slightly outperformed foreign indices due to the U.S. Dollar bounce.
One of the frothiest segments of our current era, Electric Vehicles, received more enthusiasm today when it was rumored that Apple will be developing its own self-driving car.
Technology was one of the only sectors (along with Real Estate) to close higher today.
Technology, Discretionary, and Industrials all moved higher in the Sector Selector rankings, due to the outsized drop in Energy.
The Energy sector closed below its 30 day moving average for the first time since the beginning of November.
Our trade application example today featured a bullish swing trade in CAI International (CAI) due to its CAHOLD pattern, its placement back above a rising 30 day moving average, and its bullish Near-term Divergence signal.
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Stock Market Video – News, Analysis & Insights for December 23
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