Stock Market Outlook: Equity Bulls Ride Leaders Higher

Brandon Van Zee

After a 5-day win streak, the S&P 500 Index fell by 1.08% Tuesday, but it maintains its strongly bullish intermediate posture according to the Market Forecast indicator.

The NASDAQ Composite was once again the leader, closing lower by only 0.86%

Both the NASDAQ and the S&P 500 have bullish intermediate confirmation signals, although neither is an ideal setup for reasons mentioned in the video.

The Russell 2000 (-1.86%) and Dow Jones Industrial Average (-1.51%) continue to be relative laggards and both have weakly bearish intermediate postures.

The NASDAQ Composite and S&P 500 both have “3 Green Arrows” signals.

Gold continues to be very impressive in 2020; it was up another 0.63% to multi-year highs and continues to have a strongly bullish intermediate posture.

Stock Market Video – July 8

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Despite closing slightly higher, the U.S. Dollar remains below a falling 30 day moving average and still has a strongly bearish intermediate posture.

Emerging Markets stocks gave back a little of Monday’s incredible gains, but is still leading Developed Foreign stocks (and U.S. stocks) in recent months.

The 10 year U.S. Treasury Yield remains in a bearish posture and closed today at 0.65%

The only two sectors that closed higher today were Consumer Staples and Materials.

Both Energy and Financials fell substantially in last week’s Sector Selector rankings and were Tuesday’s worst performers; Energy did close with an oversold cluster signal.

Health Care vaulted into the #2 position on the Sector Selector rankings and Technology maintained the top spot.

Our trade application example featured a bullish swing trade on Alnylam Pharmaceuticals (ALNY) due to it breaking out to all-time highs on substantial volume today.

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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.