Stock Market Indices Remain Bullish Despite Interesting Internal Data

This was one of the most interesting days we’ve seen on Wall Street in quite some time; while the percentage movements weren’t extreme, the bifurcation was noticeable.

The Dow Jones Industrial Average rallied to a new all-time high; meanwhile, the NASDAQ Composite shed over 1 percent as money flooded out of growth stocks. The S&P 500 managed to trade sideways with an ending loss of just 0.06%, but 67% of components within the index closed higher.

All major U.S. equity indices continue to trade above their 30 day moving averages; the S&P 500 and Dow Jones Industrial Average have rising moving averages.

All major indices continue to have a “3 Green Arrows” signal, but the NASDAQ Composite could lose that signal as soon as tomorrow.

The NASDAQ Composite has a weakly bearish intermediate posture according to the Market Forecast indicator; the other three major indices are strongly bullish.

All major indices continue to be positioned with “golden crosses” when evaluating the 10/40 weekly moving average crossover charts.

Interest rates were one of the day’s biggest stories; the 10 Year U.S. Treasury yield rallied strongly to 1.67%, which was just shy of a 3 month high. Naturally, bond prices sold off during this rising rate day; the Long Term U.S. Treasury index now has an oversold cluster signal.

Both gold and oil rallied and are trading above their 30 day moving averages, along with featuring strongly bullish postures.

Bitcoin fell yet again; it’s basically sitting at 3-month lows with a strongly bearish posture (it once again has an oversold cluster signal).

Our trade application example featured a short sale on Charter Communications (CHTR) due to its intermediate posture slipping back to bearish and it continuing its trend of lower highs and lower lows in recent months by rolling over just underneath its falling 30 day moving average.

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

Stock Market Outlook Video (for January 5) – 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.

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