Stock Market Outlook: Bulls Try To End Correction

The S&P 500 Index rose 0.52% on Wednesday and is now back to a weakly bullish intermediate posture according to the Market Forecast technical indicator.

The NASDAQ Composite was the today’s biggest winner with an increase of 1.21%; the Dow Jones Industrial Average and Russell 2000 were effectively flat.

All four major U.S. stock market indices now have bullish intermediate postures.

The Dow Jones Industrial Average is the only major stock market index that has a strongly bullish posture and is trading above a rising 30 day moving average.

The Russell 2000 saw a green arrow come back on the Stochastic indicator, so it no longer has a “3 Red Arrows” signal.

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

Oil continues to have a strongly bearish intermediate posture, but it actually had a strong bounce-back today (+2.15%).

Gold is still trying to figure out which direction it wants to go; it has a bullish intermediate posture but is still trading slightly below its 30 day moving average.

Emerging markets have been strong in the last three sessions; they were up over 1% today and are up about 15% in the last three months.

Stock Market Video – News Recap &Update Analysis

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

Materials once again topped the Sector Selector rankings; Consumer Discretionary and Communications also rose week-over-week.

Communications(+1.78%) and Real Estate(+1.32%) led the sectors today; Financials(-1.36%) lagged.

Materials are at a 3 month high; the interest rate sensitive groups (Utilities and Real Estate) bounced back above their 30 day moving averages.

Our trade application example featured a swing trade on Pacific Gas & Electric (PCG) due to its upside breakout from a sideways trend in the last two sessions.

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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