Stock Market Outlook Bright On Bullish Confirmation Signals

Brandon Van Zee

The S&P 500 Index (INDEXSP: .INX) snapped its 5-day win streak by finishing 0.34% lower; it still managed to hold above the psychologically-important 3,000 level.

The Dow Jones Industrial Average (INDEXDJX: .DJI) hit an all-time high on an intraday basis.

All four major U.S. stock market indices possess bullish intermediate confirmation signals according to the Market Forecast technical indicator; that signal is used for traders who want to buy the dip during a bullish trend.

Market Sentiment posture is now also bullish across all four key U.S. equity indices.

The Dow Jones Industrial Average and NASDAQ Composite both have “3 Green Arrows” signals using daily candles.

All four U.S. stock market indices have golden crosses using the 10 week and 40 week moving averages.

Crude oil struggled today despite continued saber-rattling from Iran

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

Mid-Week Stock Market Video – July 16, 2019

Additional highlights and analysis:

  • The U.S. Dollar had a solid bounce today but now finds itself at a horizontal resistance area that it has tested 3 different times in the last 3 months
  • The 10 year U.S. Treasury yield rose to 2.12%; U.S. government long bonds have a bearish intermediate posture and are trading below the falling 30-day moving average
  • Brazil stocks continue to have a bullish posture despite 4 straight down sessions and could be setting up for a higher low bounce; stocks in the United Kingdom have a bearish posture and are trading at 3-week lows
  • Health Care and Real Estate are the only sectors with a bearish intermediate posture; Consumer Discretionary and Consumer Staples have excellent trends
  • The Industrials sector has produced a couple stocks in recent weeks that grew their dividend more than 10%, have more than 10 years in a row of dividend growth, and offer a yield of over 3% (CMI & MSM)
  • Our trade application example features a selling a bull put spread on Ulta Beauty (ULTA), which continues to benefit from the strong U.S. consumer

Twitter:  @BrandonVanZee and @Market_Scholars 

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.