U.S. Equity Indices Party On As Bullish Signals Continue

While the S&P 500 Index, Nasdaq Composite, Dow Jones Industrial Average, and Russell 2000 reach all-time highs, it is the latter (and small caps) that are leading market’s recent advance.

The Russell 2000 also has the strongest Market Sentiment posture of the four major U.S. equity indices.

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

The S&P 500, Russell 2000, and NASDAQ Composite currently have “3 Green Arrows” signals.

All major indices have golden crosses in the 10/40 moving average weekly crossover method; the Russell 2000 has the widest distance between those moving averages in 3 years.

The U.S. Dollar rose for the third straight session Tuesday after having oversold cluster signals last week. That said, the bounce has been very weak in relative terms and its posture is still bearish.

Long-term government bonds rose Tuesday but foreign bonds have been acting much stronger than U.S. bonds.

Foreign stocks also continue to outperform domestic stocks; foreign developed markets continue to have a strongly bullish intermediate posture.

Preferred stocks have been quietly establishing a strong uptrend, perhaps due to a renewed enthusiasm within the banking industry.

Gold is considered to have a weakly bullish intermediate posture currently, but still has a lot of work to do before a true trend change can be assumed.

The big news in the sector analysis is the recent strength in the Energy sector, which now sits atop the Sector Selector rankings; Utilities remains in last place.

Our trade application example featured selling a bull put spread on ServiceNow Inc (NOW) due to its strongly bullish intermediate posture and break-out to new all-time highs.

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

Stock Market Video – News, Analysis & Insights for December 9

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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