U.S. Stock Market Bullish On Small Caps Strength (But Overbought)

The S&P 500 fell 0.48% after digesting Mondays’s rally due to positive additional COVID19 vaccine data. It closed today with a bullish intermediate confirmation signal.

The stalwart of the equity markets today was once again in the small cap universe; the Russell 2000 finished higher by 0.37% and achieved a new all-time high.

The Russell 2000 had an overbought cluster signal yesterday due to so much strength.

All four major U.S. equity indices have strongly bullish intermediate postures and “3 Green Arrows” signals using daily aggregation charts.

Technology and Communications (“lockdown” beneficiaries) fell in the most recent Sector Selector rankings and “reopening” sectors like the Financials and Real Estate improved.

There’s been major rush of money into foreign markets after the vaccine announcements, with both Developed and Emerging markets now outperforming the United States.

The U.S. Dollar continues to have a strongly bearish posture; oil remains above its 30 day moving average. See more insights further below video content.

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

Stock Market Video – News, Analysis & Insights for November 18th

Utilities and Health Care were today’s worst sectors; Energy and Real Estate were the best.

With the exception of China, the stock markets of all major international economies have bullish intermediate postures.

Our trade application example featured buying a bear put spread on Activision Blizzard (ATVI) due to its recent relative underperformance, clearly defined downtrend, and today’s long upper shadow where it rejected a key resistance area.

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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