The S&P 500 Index finished flat Tuesday (-0.02%) and appeared to be in a holding pattern awaiting further information from the Federal Reserve (FOMC meeting Wednesday) as well as more earnings announcements.
Similarly, the Dow Jones Industrial Average (+0.01%) barely budged.
The Russell 2000 outperformed slightly (+0.14%), but could possibly be stalling out at a key point in a reversal price pattern. The NASDAQ Composite was the day’s laggard (-0.34%) as it turned lower just before touching an all-time high established in February.
All four major stock market indices have strongly bullish intermediate postures and the S&P 500 Index and NASDAQ Composite both closed with bullish intermediate confirmation signals. The Russell 2000 has a “3 Green Arrows” signal but it’s not ideal due to its falling 30 day moving average.
The 10-Year U.S. Treasury Yield finished higher at 1.62%; the long term U.S. Treasuries ETF closed lower by 0.87% but still has a bullish intermediate posture. The U.S. Dollar rose slightly; it established an oversold cluster signal Monday for the first time in months and will be worth watching for a short-term bounce.
Gold (-0.25%) and Oil (+1.84%) continue to have strongly bullish intermediate postures.
Energy continues to be the only U.S. sector with a strongly bearish intermediate posture, but Staples and Utilities now have a weakly bearish posture. With interest rates rising today, it wasn’t surprising that Financials was the top sector (+0.79%).
Our trade application example featured selling a bull put spread on the Long-term U.S. Treasury ETF (TLT) due to its bullish intermediate confirmation signal near a support level.
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Stock Market Outlook Video – News, Analysis, & Insights – April 27
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