Stock Market Outlook: Mixed After Uninspiring Trading Day

The S&P 500 Index sold off by -0.81% in Tuesday’s trading session. This is particularly disappointing considering Monday’s positive bounce. The S&P 500, Dow Jones Industrial Average, and Russell 2000 now have weakly bearish intermediate postures according to the Market Forecast technical indicator.

The NASDAQ Composite appears to be suffering worse than the other indices; it was down 1.69% and now has a strongly bearish intermediate posture.

The NASDAQ Composite is also the only one of the major indices to currently have a “3 Red Arrows” signal; it’s been below the 30 day moving average for over a week.

Interest rates fell for the third straight day, but remain in an upward trajectory; the U.S. Dollar had a fairly substantial drop.

Looking at commodities… Gold rose 0.54%, but considering the recent oversold cluster signals, that was considered a bit of a let-down. Crude Oil fell for the 4th straight day, but it remains entrenched in an uptrend and retains its strongly bullish intermediate posture.

Developed foreign stocks outperformed U.S. stocks and emerging markets stocks.

Bitcoin fell 2.20% and has a weakly bearish intermediate posture; however, it remains well above its rising 30 day moving average.

Energy once again took over the top slot on the Sector Selector tool; Utilities remained last. Energy, Financials, and Communications are all holding up relatively well and are just a couple days removed from yearly highs.

Our trade application example featured selling a bear call spread on the NASDAQ 100 ETF (QQQ) due to its strongly bearish intermediate posture, 3 Red Arrows signal, and its continued placement below the 30 day moving average in the last several sessions.

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

Stock Market Video – News, Analysis & Insights for March 2

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.

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