Stock Market Outlook Dampened By Bearish Signals

The excitement from the Apple product event wore off by late morning Tuesday and all major U.S. stock market indices closed negative and near their lows.

The S&P 500 Index fell by 0.57% and is now trading below its rising 30 day moving average and has a weakly bearish intermediate posture.

The Dow Jones Industrial Average was down 0.84% and finished with a bearish engulfing candlestick pattern; it has a strongly bearish intermediate posture).

The Russell 2000 fell by 1.37% and has a weakly bearish intermediate posture; it is trading below its falling 30 day moving average.

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The NASDAQ Composite fell by 0.45% and has a weakly bearish intermediate posture. That said, is still trading above its rising 30 day moving average. The NASDAQ is the only major stock index to not have a “3 Red Arrows” signal due to its price still being above the 30 day moving average.

Bitcoin popped 3.67% on the back of a major price target hike by Cathie Wood; it’s bouncing up and off of the rising 30 day moving average.

Interest rates fell today; the 10 year U.S. Treasury yield ended at 1.27%; it has a weakly bearish intermediate posture. Long Term U.S. Government bonds rose strongly today (+1.21%) and have a strongly bullish posture.

Technology improved within this week’s Sector Selector rankings. The Discretionary and Energy sectors still have bullish intermediate postures, but their trends leave a lot to be desired. With interest rates falling today, it wasn’t surprising to see Real Estate and Utilities outperform the Financials sector, but all sectors finished lower.

Our trade application example featured selling a bull put spread on Netflix (NFLX) due to its bullish intermediate confirmation signal; it has pulled back in the past week after a strong breakout in the last month.

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

Stock Market Outlook Video (for September 15) – News and Analysis

Twitter:  @BrandonVanZee and @MarketScholars

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.