Stock Market Outlook Bullish, But Earnings In Focus

The S&P 500 Index fell by 0.63% on earnings disappointments, COVID19 vaccine development roadblocks, and a sell-the-news moment after Apple’s iPhone announcement.

Despite Tuesday’s selloff, all four major stock market indices continue to have strongly bullish intermediate postures (according to the Market Forecast technical indicator).

The S&P 500 Index, Dow Jones Industrial Average, and Russell 2000 Index continue to flash bullish intermediate confirmation signals. Note that these are considered less-ideal trading set-ups.

The NASDAQ Composite is holding up the best of the stock indices due to a number of work-from-home and cloud software stocks bouncing higher.

All four major U.S. stock market indices have “3 Green Arrows” signals using daily candles, and golden crosses when using the 10/40 weekly moving average system.

The price of Crude Oil rose by over 1% Tuesday and managed to close back above its falling 30-day moving average; gold fell by 1.57%.

Stock Market Video – News, Analysis & Insights for October 14th

The U.S. Dollar had a strong day and is back above its rising 30-day moving average.

Interest rates sold off aggressively to end at 0.72%(10 yr Treasury); and bond prices had a solid day of upside activity.

Developed market foreign stocks suffered more than the U.S. markets today.

The Communications sector was the only sector to end in the green.

Real Estate, Financials, Energy, and Industrials all fell by more than 1%.

Technology made a big move into the 2nd place slot on the most recent Sector Selector rankings.

Japan, India, and South Korea look to have solid uptrends in place; meanwhile, Brazil and Russia are struggling on a relative basis.

Our trade application example featured selling a bull put spread on DocuSign (DOCU) due to its recent bounce off of its rising 30 day moving average and posture shift back to bullish.

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

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.

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