Stock Market Outlook Mixed, Something’s Gotta Give

The S&P 500 Index fell (-0.24%) for the third straight day on Tuesday, but is still clinging to its weakly bullish posture for now. There’s a good chance that will change in Wednesday’s trading.

Looking at the other major stock market indices… The Dow Jones Industrial Average fell 0.34% and maintained its weakly bullish posture for the sixth day; it is still below its falling 30 day moving average. The NASDAQ Composite slumped 0.14% but it still has a long ways to go before overtaking its 30 day moving average. The Russell 2000 closed higher +0.61% and has the strongest relative trend in place.

None of the key equity indices have a “3 Green Arrows” nor “3 Red Arrows” signal. That said, all of the major equity indices still have a bullish crossover on the longer term charts when comparing the 10 week moving average to the 40 week MA.

The U.S. Dollar continued to power higher with a 0.12% move and it still has a strongly bullish intermediate posture (and is trading above its rising 30 MA).

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Gold was up 0.45% today and now has a weakly bullish posture; Oil was down 0.12% today and continues to have a strongly bullish intermediate posture.

Treasury Yields reversed lower today and the 10-year interest rate ended at 1.58%. Long-term U.S. Government bonds surged 1.71% today, the reversion-to-the mean move was not unexpected after two straight oversold clusters.

Bitcoin fell 2% today but remains in a strongly bullish uptrend and above its rising 30 day moving average.

Energy and Financials maintain their place as #1 and #2 on the Sector Selector; they both also have strongly bullish intermediate postures (as does Discretionary). Health Care sold off by 0.48% today and has another oversold cluster (as does Communication Services). Real Estate had a relatively strong move today with interest rates falling; they bounced back by 1.34% and now have a weakly bullish posture.

Our trade application example featured a swing trade on Scientific Games Corp (SGMS) due to its bullish Near-Term divergence and a solid 4% bounce off its 30 day moving average on a day when the general stock market was stuck in the mud

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

Stock Market Outlook Video (for October 13) – 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.