U.S. Stock Market Indicators Remain Bullish But Eyes On Inflation Data

The S&P 500 Index is flat for the week as Wednesday’s trading session kicks off. That said, it is notable that the S&P 500 continues to have a strongly bullish intermediate investing posture. Similarly, the Dow Jones Industrial Average and the NASDAQ Composite have bullish intermediate postures.

Stock market bulls will be happy to know that the S&P 500, Dow Jones Industrials, and NASDAQ Composite have bullish intermediate confirmation signals as well (although of the less ideal variety).

The small cap Russell 2000 Index continues to lag the market and is now trading below the falling 30-day moving average and has a strongly bearish posture.

Moreover, the S&P 500 and the Dow Jones Industrial Average have “3 Green Arrows” signals; the Russell 2000 has a “3 Red Arrows” signal.

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All major stock market indices continue to trade with their 10 week moving averages above their 40 week moving averages.

In other asset classes, it is notable that Bitcoin sold off another 2% and remains in a strongly bearish intermediate posture below its falling 30-day moving average.

Long Term U.S. Treasuries fell for the 3rd straight day, but remain above a rising 30-day moving average with a strongly bullish posture. The U.S. Dollar has flipped bullish and closed Tuesday at 3-month closing highs (and has a strongly bullish posture). While the price Crude Oil remains in a strong up-trend, Gold continues to trade below its 30-day moving average.

Our trade application example featured selling a bear call spread on gold (GLD) due to it remaining below a falling moving average with the expectation that resistance could occur within the next week.

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

Stock Market Outlook Video – News, Analysis, & Insights for July 14

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.