Stock Market Outlook: Are Bulls Abandoning Small Caps?

The S&P 500 Index achieved another all-time high and finished at 4,141 (+0.33%); it continues to have a strongly bullish intermediate posture.

The NASDAQ Composite lead the way Tuesday, however, with an advance of 1.05%. It is now less than 2 percent away from its high from February and also has a strongly bullish posture.

It was a mixed day overall for traders, as the Dow Jones Industrial Average fell for the second straight day (-0.20%), but continues to have a strongly bullish intermediate posture. The Russell 2000 Index also fell (-0.22%)… but it is the odd-man out due to its weakly bearish intermediate posture – it is trading below its falling 30 day moving average. It is also the only major U.S. stock market index that does not have a “3 Green Arrows” signal.

All four major U.S. stock market indices have bullish 10 week/40 moving average crossovers; the NASDAQ Composite showed an uptick in its PPO due to recent strength.

Bitcoin (+4%) and Ethereum (+5%) were quite strong on the eve of the Coinbase (COIN) IPO; they both hit all-time highs have strongly bullish postures. Meanwhile, the U.S. Dollar fell 0.36% and sliced straight through its 30 day moving average. U.S. Dollar weakness assisted in pushing commodities like gold (0.71%) and oil (1.22%) higher.

Gold continues to produce constructive price action; it is now trading above its rising 30 day moving average and continues to have a strongly bullish posture.

Turning to our sector analysis, Energy is the only sector that currently has a strongly bearish intermediate posture.

Our trade application example featured selling a put on IHeartMedia Inc (IHRT) due to the major breakout on heavy volume Tuesday; it once again has a strongly bullish intermediate posture and remains within a series of higher highs and higher lows.

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

Stock Market Video – News, Analysis & Insights for April 13

Twitter:  @BrandonVanZee and @MarketScholars

The author may have positions in mentioned securities at the time of publication. 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.

Sign up for our FREE newsletter
and receive our best trading ideas and research