Stock Market Records Overbought Clusters, Time For Pullback?

The S&P 500 Index rose 1.62% on Tuesday, but the headlines belonged to the Dow Jones Industrial Average, which closed above 30,000 for the first time in history.

Over 80% of stocks finished higher, continuing a theme we’ve seen recently of broad participation across the various markets and sectors.

All four major U.S. stock market indices have strongly bullish intermediate postures; the S&P 500 Index and Dow Jones Industrial Average have overbought cluster signals.

Small cap stocks continue to roar. The Russell 2000 Index led all broad U.S. equity indices with an advance of nearly 2% and achieved another all-time high.

With the S&P 500 gaining its momentum back, all major indices have “3 Green Arrows” status once again.

The only sector to finish down was Real Estate; meanwhile, there were some massive upside gainers (Energy +5.1%, Financials +3.5%, Materials +2.5%).

We didn’t see much change at the top of the Sector Selector, but there is a major upheaval taking place at the bottom with Energy currently surging several positions higher.

By some measures, this is the best month in history for the Energy sector due to an expectation of increased use of fossil fuels if the COVID19 vaccine is successfully deployed.

With this being Thanksgiving week, be aware of the holiday-shortened trading schedule and be sure to check out our Black Friday sale on Premium memberships.

Our trade application example featured a bullish swing trade on Cryoport Inc (CYRX) due to its recent Near-Term posture shift to bullish and its expected involvement in the shipping of vaccines that require special logistics ensuring sub-zero temperatures.

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

Stock Market Video – News, Analysis & Insights for November 25th

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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