Stock Market Outlook: New Highs, Green Arrows… And Volatility?

The S&P 500 Index and Nasdaq Composite closed Tuesday at a new all-time high on Tuesday. The NASDAQ Composite, however, closed with an overbought cluster signal according to the Market Forecast technical indicator.

All four major U.S. stock market indices have strongly bullish intermediate postures and are trading above rising 30 day moving averages.

Despite rising stock markets, the VIX Volatility Index peculiarly rose by a small amount.

The S&P 500 and Dow Jones Industrial Average currently have “3 Green Arrows” signals.

10 Year Treasury yields bounced higher once again; conversely, long term government bonds continued bouncing down and away from their falling 30 day moving average.

The U.S. Dollar took a big hit; which allowed gold a brief reprieve from its own recent downtrend by bouncing up 2%. Dollar weakness also allowed for a continuation of a recent theme: foreign stocks outperforming U.S. stocks.

The Energy sector made a huge leap on the Sector Selector rankings last week; Utilities have now dropped to last place (Materials continue to be in first place).

The vast majority of sectors have strongly bullish postures and are trading new their recent highs; Utilities is the only one trading below a falling 30 day moving average.

Our trade application example featured selling a put on 3M Company (MMM) due to its pullback to support after a recent breakout; it also has a bullish intermediate confirmation signal.

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

Stock Market Video – News, Analysis & Insights for December 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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