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).
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
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Stock Market Outlook Video (for October 13) – News and Analysis
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