Stock Market Outlook: It’s Time To Be Picky

This week has been a mixed bag. Tuesday was a great example. While the S&P 500 and Dow Jones Industrial Average fell -0.3% Tuesday, the Russell 2000 Index was up +1.7% and the Nasdaq was almost flat.

The S&P 500 and Dow Industrials retain strongly bullish intermediate postures, but the S&P 500 still hasn’t been able to surpass its high from March 17th. It’s also worth noting that the S&P 500 has a “3 Green Arrows” signal.

The Nasdaq Composite has a strongly bearish intermediate posture, as well as a “3 Red Arrows” signal.

The U.S. Dollar continues to be in rally mode. The Dollar bounced higher by another 0.40% Tuesday, achieving another multi-month high and ending with an overbought cluster signal. Dollar strength assisted in pushing commodities prices lower; oil was down 1.79% and gold was down 1.77% (gold closed near 3-month lows).

The biggest change on the Sector Selector tool this week was the large drop in the Communications sector, due to recent margin call forced selling of media names.

Industrials and Real Estate both have attractive trends in place, with strongly bullish intermediate postures. Technology and Communications are the two sectors have a bearish intermediate posture; suggesting risk appetite isn’t overly strong.

Our trade application example featured a bullish swing trade on shares of Winnebago Industries (WGO) due to its bounce back above its rising 30-day moving average after easily beating analysts’ earnings expectations.

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

Stock Market Video – News, Analysis & Insights for March 30

Twitter:  @BrandonVanZee and @Market_Scholars 

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.

Sign up for our FREE newsletter
and receive our best trading ideas and research