The S&P 500 fell 0.34% on Tuesday as inflation came in ultra-hot (8.5% YoY). Initially, stocks popped over 1 percent but then the sellers took over and pushed stocks into the red. To be sure, we are in a period of heightened price volatility.
The S&P 500 Index is now trading below its rising 30 day moving average and has a weakly bearish posture. The Dow Jones Industrials also has a weakly bearish posture despite being above their rising 30 day moving average.
In tech-land, the NASDAQ Composite has a weakly bearish posture. And it is trading below its falling 30 day moving average.
The Russell 2000 actually closed positive on Tuesday but it’s the only major index to have a strongly bearish intermediate posture.
Elsewhere, the U.S. 10-Year Treasury yield fell for the first time in eight trading sessions; it settled at 2.72% and is still strongly bullish. The U.S. Dollar rallied 0.34% (its ninth straight day without a loss); it’s at a new yearly high and has a strongly bullish intermediate posture
Looking at commodities, Gold and Oil both rallied nicely on Tuesday and both are now above the rising 30 day moving average. That said, gold has a bullish posture and oil is still bearish.
Energy has now been atop the Sector Selector tool for over three straight months; Health Care cracked the Top 4 for the first time in several months.
Our trade application example featured a selling a put on Starbucks Corp (SBUX) due to its recent sell-off giving it an oversold cluster (on weekly chart) and putting it closer to a rare 3% dividend yield where investors have historically formed a bottom
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Stock Market Outlook Video (for April 13) – News and Analysis
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