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 18):
The two-day rally in equities has been fueled by weakness in U.S. Dollar. And the most oversold assets have outperformed while recently strong asset classes underperformed.
– S&P 500 (NYSEARCA: SPY) and Dow Jones Industrials (NYSEARCA: DIA) returned to strong bullish postures but NASDAQ Composite and Russell 2000 still lagging.
– Seasonality for the S&P 500 heading into a key period from mid-August to the end of the month stills suggests weakness ahead.
– Long-term chart for S&P 500 is still bullish but Heikin Ashi weekly candles showing a red flag. The stock index 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 (INDEXCBOE: VIX) dropped sharply after quick spike that failed to reach 20 but is now setting up for higher lows.
– Sector Selector tool shows strength in “safe haven” sectors. Technology sector showing weakness.
Note that today’s trade idea highlights a bearish trade on a popular tech stock that broke down today after earnings and shows a potential head and shoulders pattern developing. Enjoy the video!
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.