The S&P 500 rallied 1.61% and proved out the theory that the day after the tax filing deadline has tended to be more bullish than bearish over the years.
It was a broad-based rally with 88% of its components closing in the green; Energy stocks were the only major group to sit out Tuesday’s bullish party. With the advance, the S&P 500 intermediate posture is back to strongly bullish and its trading above its rising 30 day moving average.
All four major U.S. stock market indices had an aggressive, above-average range day with persistent buying throughout the session.
The Dow Jones Industrials bounced higher by 1.45%; it is also back to a strongly bullish intermediate posture and trading above its rising 30 day moving average.
The NASDAQ Composite was Tuesday’s biggest winner (+2.15%), but it remains below its rising 30 day moving average and has just a weakly bullish posture. The Russell 2000 rallied 2.04%; it has a weakly bullish posture and is trading below its rising 30 day moving average.
The U.S. 10-Year Treasury yield rallied to multi-year highs and closed at 2.91%; it continues to have a strongly bullish intermediate posture. Long term U.S. Treasuries fell to multi-year lows and closed with yet another oversold cluster (daily, weekly, and monthly).
The U.S. Dollar rallied 0.22%; it has had just one down day in the last 13 trading sessions and is considered strongly bullish.
Gold fell a fairly aggressive 1.51%; not only did that move its posture to bearish, but it is now trading below a falling 30 day moving average. Oil struggled today as well (-4.41%); but it continues to hang on to its bullish posture and is a hair above its falling 30 day moving average.
Bitcoin benefitted from the “risk-on” mindset of Tuesday’s rally; it closed above $41,000 and has a weakly bullish posture.
Energy continues to be at the top of the Sector Selector rankings, but it was the only sector that closed lower today (-0.81%).
Tuesday’s best sector was Consumer Discretionary (+2.90%), led by strength in Amazon and Tesla.
The Communications sector rallied 1.99% on Tuesday, but it is expected to be under pressure Wednesday due to Netflix’s abysmal earnings release afterhours.
All sectors except Financials and Health Care have a bullish intermediate posture according to the Market Forecast technical indicator.
Our trade application example featured buying shares of Lindsay Corp (LNN) as a bullish swing trade due bouncing up and off its rising 30 day moving average, which has resulted in bullish Near-Term and Intermediate postures.
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Stock Market Outlook Video (for April 20) – News and Analysis
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