Weekend Market Outlook (August 11): Seasonality, Volatility, and Trade Ideas

David Settle

Another week gone by and there is a lot of market news and price action to discuss.

In this week’s weekend market outlook we will discuss several topics, including seasonality and volatility. Below is a summary of what’s in the video below. Please feel free to comment or hit us up with any questions.

Market Outlook Video (August 11):

–  Today’s is the first risk-off move in a while but was lacking a few key signs of risk aversion. I outline what those are in today’s outlook.

–  Market Forecast for the NASDAQ (NASDAQ: QQQ) and Russell 2000 (NYSEARCA: IWM) suggest Friday’s weakness in the S&P 500 (NYSEARCA: SPY) may be temporary – especially with bullish short-term signals popping up on S&P and Dow Jones Industrials.

stock market indexes chart analysis august 10 bullish trend

–  Seasonality review for the S&P 500 heading into a key period from mid-August to the end of the month.

–  Long-term chart for S&P 500 is still bullish; I discuss key levels for Heikin Ashi weekly candles.

–  The S&P 500 is trading down to 17-day SMA and looking for support with today’s volume and trading range above average but still easily in the lower half of their 52-week ranges.

–  Volatility bounced up towards resistance and may start moving lower early next week.

–  Discussion of strong dollar impact of various asset classes and foreign markets; “risk off” sector rotation.

–  Today’s trade idea highlights a strategic bearish trade on a downtrending stock that broke down today from a dead cat bounce with the breakout in the USD.

 

Twitter:  @davidsettle42  and  @Market_Scholars

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