Stock Market Outlook Strengthens On Bullish Forecast Indicators

The Senate passed a $1 trillion bipartisan infrastructure package and investors cheered, sending both the S&P 500 and Dow Jones Industrial Average to all-time highs.

The S&P 500 rose +0.10% and continues to trade above its 30-day moving average (a strongly bullish intermediate posture according to the Market Forecast indicator). Meanwhile, the Dow Jones Industrial Average rose +0.46% jump, as old-line names benefitted from the infrastructure news and rising interest rates.

The NASDAQ Composite was the worst performer (-0.49%), but continues to trade above its rising 30 day moving average and has a strongly bullish posture.

The Russell 2000 rose 0.20% and it now joins the other stock market indices with a strongly bullish posture. Note that its 30 day moving average is still pointing lower at this moment.

The Dow Jones Industrial Average and Russell 2000 have “3 Green Arrows” signals; however, the trend of the Dow Jones looks vastly superior to the Russell 2000

All four major U.S. equity indices continue to have a golden cross on the 10/40 weekly moving average crossover chart.

Despite continuing to be in a strong intermediate trend, Real Estate was the worst sector performer today (likely due to rising interest rates). Financials and Technology both rose week-over-week on the Sector Selector rankings.

Elsewhere… Bitcoin continues to trade near two-month highs and has stayed above its rising 30 day moving average for the last couple weeks. U.S. Government bonds and High Yield bonds both fell; they are trading below their 30 day moving averages and have bearish intermediate postures. The 10 Year U.S. Treasury Yield rose for the sixth straight day(ending at 1.34%); importantly, it’s now above its 30 day moving average (first time since early June). Gold stabilized after three days of ugly selling and oil rose nicely today (+2.32%) with the infrastructure news; both commodities have bearish postures.

Our trade application example featured a bullish swing trade on Graphite Bio (GRPH) due to it now having a bullish Near-Term posture as it bounced off of a consolidation zone from the past couple weeks; like a lot of other CRISPR gene editing stocks, it may be benefiting from rumors of Moderna seeking buyout candidates in that space

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

Stock Market Outlook Video (for August 11) – 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.

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