U.S. Stock Market Outlook: Up-Trends Have Bulls Running In August

The S&P 500 Index rose by 0.36% and ended at its highest level in over 5 months.

All four major U.S. equity indices have strongly bullish intermediate postures according to the Market Forecast technical indicator.

While it was actually an underperformer today, the NASDAQ Composite once again hit an all-time high.

The Russell 2000 managed the biggest gain with an advance of 0.69%.

The Dow Jones Industrial Average is the only major index without a “3 Green Arrows” signal, but it will likely achieve that status tomorrow.

One of the day’s biggest stories was gold, which saw a breakout to all-time highs above the psychologically important number of $2,000 per ounce.

Oil also finished higher; both commodities have strongly bullish intermediate postures and benefited from another fall in the U.S. Dollar.

Stock Market Video – August 4, 2020

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Foreign stocks outpaced U.S. stocks; in particular, the Emerging Markets seem quite strong and are now up 23% in the last 3 months.

Foreign bonds also advanced to multi-month highs.

The Energy sector was the strongest today (+2.43%) as a result of the strength in oil prices

Health Care and Financials were the only two sectors to finish lower.

The Materials sector is the only one that is considered to have a weakly bearish posture, which corroborates the slippage in its Sector Selector rankings last week.

Staples and Technology saw their rankings advance and their charts both hit multi-month highs today.

Our trade application example featured a bullish swing trade on U.S. Foods (USFD) due to its bullish Near-Term Divergence and its strong earnings bounce off its 30 day moving average.

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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.