Stock Market Indices Lose ‘3 Green Arrows’ Signal

Brandon Van Zee

The S&P 500 Index INDEXSP: INX fell 0.28% today, but retains its bullish intermediate posture according to the Market Forecast indicator.

All major U.S. stock market indices have bullish intermediate postures, but the Russell 2000 Index is at risk of reverting to a bearish posture.

The NASDAQ Composite INDEXNASDAQ: .IXIC finished with an overbought cluster signal.

All four major U.S. stock market indices have bullish 10-40 weekly moving average crossover signals.

None of the major stock indices have a “3 Green Arrows” signal due to a loss of momentum according to the MACD histogram.

Oil and gold have been some of the strongest performers in recent weeks and have bullish intermediate postures. These trends are supported by a weak U.S. Dollar.

Stock Market Video – January 7

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Defensive sectors (Staples & Real Estate) largely have bearish postures and cyclical sectors (Technology & Discretionary) continue to have bullish postures.

Stronger foreign markets: Canada, Netherlands, and Switzerland.

Weaker foreign markets: Saudi Arabia, Turkey, and India.

Our trade application example featured selling a bull put spread on Revolve Group (RVLV) now that it has bottomed after its recent IPO.

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.