Stock Market Outlook: Bulls Ride ‘3 Green Arrows’ Higher

The S&P 500 Index finished higher for the fourth straight session and closed higher by 0.36%; it achieved another all-time closing and intraday high.

The NASDAQ Composite was today’s leader (+0.76%) and established another record high as well.

The Dow Jones Industrial Average was today’s laggard, closing lower by -0.20%; this was its first day of trading since announcing 3 major constituent changes.

All four major U.S. stock market indices have strongly bullish Market Forecast intermediate postures; the Russell 2000 is the most at risk of losing this posture.

The NASDAQ Composite and the S&P 500 now have “3 Green Arrows” signals.

All four major U.S. stock market indices have golden crosses on the 10/40 weekly moving average crossover method.

Technology advanced its ranking on the Sector Selector for the second straight week; Energy is back in the last place position.

Stock Market Outlook Video (August 25)

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

The Energy Sector was today’s worst performer (-1.40%) and has a strongly bearish intermediate posture; Utilities and Real Estate have weakly bearish intermediate postures.

Communications led the markets today with a 0.94% advance; their chart (along with Technology and Discretionary) looks incredibly strong.

Long Term U.S. Treasuries have a strongly bearish intermediate posture; meanwhile, junk bonds have been bullish and suggests risk appetite is strong.

The U.S. Dollar now has a weakly bullish posture and gold has a weakly bearish posture, but both charts are at potential reversal points near moving averages.

Crude Oil has a strongly bullish posture and has been trending nicely higher.

Emerging markets may have benefited from positive China/U.S. trade talks today; they were up over 1% today and are up 21% in 3 months.

Our trade application example featured selling a put on Shift4 Payments Inc (FOUR) due to its breakout to all-time highs today and strongly bullish intermediate posture.

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.

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