July Retail Sales data disappointed investors, who sent the stock market down over 1% for much of the day Tuesday. However, a fairly strong rally into the closing bell limited losses. Futures for Wednesday morning are mixed.
Elsewhere on Tuesday, the S&P 500 Index fell 0.71%, which was its first down day in the last week. The index continues to have a strongly bullish intermediate posture according to the Market Forecast. The Dow Jones Industrial Average did not achieve an all-time high for the first day in over a week, closing down by 0.79%. It has “3 Green Arrows” signal and a strongly bullish intermediate posture. The NASDAQ Composite fell 0.93%; it is barely hanging on to its strongly bullish posture and is now trading below its falling 30 day moving average. The Russell 2000 fell the most (-1.19%); it still has a weakly bearish posture and is also trading below its falling 30 day moving average
Emerging markets were punished by Chinese stocks once again; they remain in a strongly bearish intermediate posture and are at a 3-month closing low. Developed foreign markets and U.S. stocks are faring better, with strongly bullish postures and trading above rising 30 day moving averages
The U.S. Dollar had a strong day, finishing higher by 0.60% and nearing a resistance break-out from the last few weeks. It currently has a strongly bullish intermediate posture.
Gold (-0.15%) and crude oil (-0.98%) both finished lower and are trading below their falling 30 day moving averages.
Health Care (XLV) was Tuesday’s sector star (+1.18%). It was up even when the rest of the market was at its lows and it closed at the highs of the day. Consumer Discretionary (XLY) was the day’s sector loser (-2.37%), due to heavy influence from TSLA and HD, which both underperformed the market.
Our trade application example featured selling a bear call spread on Delta Airlines (DAL) due to it bouncing down and away from its falling 30 day moving average along with printing a new bearish intermediate posture after today’s sell-off
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Stock Market Outlook Video (for August 18) – News and Analysis
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