The S&P 500 Index sold off in heavy volume for the third consecutive session on Tuesday, falling 2.78%.
It now has a weakly bearish intermediate posture according to the Market Forecast indicator.
Worse yet, the NASDAQ Composite collapsed 4.11%. Tthe Dow Jones Industrial Average and Russell 2000 managed to close lower by approximately 2%.
All four major U.S. stock market indices now have weakly bearish intermediate postures.
All four major U.S. stock market indices also have “3 Red Arrows” signals now that they have all closed below their 30 day moving averages.
Only 10% of the constituents within the S&P 500 Index finished higher Tuesday.
The VIX Volatility Index rose to 31, but it was a relatively quiet move considering the sell-off in the broad markets.
Stock Market Outlook Video – September 9, 2020
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The U.S. Dollar and Long Term U.S. Treasuries rose as they attracted money as safe havens.
The move into the Dollar pressured commodities like oil and gold, both of which now have a strongly bearish intermediate posture.
The two varieties of foreign stocks (developed & emerging) are both now trading below falling 30 day moving averages.
All eleven sectors fell on Tuesday, with Technology (-4.52%) and Energy (-3.64%) having the worst showing.
The only sector that continues to have a bullish intermediate posture is Industrials.
The Sector Selector rankings featured a drop in the two sectors that benefit from the work-from-home theme: Technology and Communications.
Our trade application example featured selling a bear call spread on American Tower (AMT) due to its bearish near-term divergence.
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