Stock Market Outlook: Price Action Remains Bullish

The S&P 500 (SPY) finished flat on Tuesday (+0.04%), but it was actually quite a bullish day under the hood; the index saw advancers outpacing decliners 2-to-1. And yet again, the small cap Russell 2000 (IWM) established its leadership role with an advance of 1.77% and achieving another all-time high.

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

All four major U.S. stock market indices currently have a “3 Green Arrows” signal and “golden crosses” using the 10/40 weekly moving average system.

Both foreign developed and emerging market stock indices have strongly bullish postures.

The U.S. Dollar declined Tuesday, but bounced high enough on Monday that it now has a precarious weakly-bullish intermediate posture. Long-term U.S. Government bonds fell for their seventh straight session, but with a recent oversold cluster signal emerging, a quick pop higher is possible.

Oil and Corn continue to be strongly bullish within the commodity complex. Energy stocks have been strong performers and are in the Top 3 of the Sector Selector. That said, they now have an overbought cluster signal.

Our trade application example features buying Lyft Inc. (LYFT) as a swing trade due to its bounce off its 30 day moving average and break-out to new 10-month highs.

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

Stock Market Video – News, Analysis & Insights for January 13

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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