Tuesday was a bit of an odd day with Bitcoin and Blue Chips selling off, and the NASDAQ Composite closing higher (and achieving a new all-time high).
The NASDAQ Composite continues to be our market leader. It was the only index to close higher (+0.07%) and has a strongly bullish intermediate posture.
The S&P 500 fell by 0.34%. According to the Market Forecast, it retains its strongly bullish intermediate posture and is trading above its rising 30 day moving average.
The Russell 2000 fell by 0.72%, but still ended the day with a bullish intermediate confirmation signal.
The Dow Jones Industrial Average was the day’s worst performer (-0.76%). It has a weakly bearish intermediate posture and is now trading below its falling 30 day moving average. The Dow Jones Industrial Average has a “3 Red Arrows” signal; the other major indices have “3 Green Arrows” signals.
Interest rates bounced nicely once again Tuesday, with the 10 year U.S. Treasury yield ending at 1.37% (and is still trading above its rising 30 day moving average). Bonds fell again and U.S. Government long bonds (-0.84%) have a bearish intermediate posture and are trading below a falling 30 day moving average.
The U.S. Dollar snapped higher by 0.49%. That said, the Dollar finds itself trading below its falling 30 day moving average and still has a bearish posture.
Bitcoin was one of the day’s big stories. El Salvador became the first nation to accept it as legal tender, but it ended up falling 7% after the enthusiasm died down.
Technology, Communications Services, and Consumer Discretionary were the only sectors that finished higher. Meanwhile, Industrials was the worst performer.
Our trade application example featured buying a long-dated call option on StoneCo (STNE) as a result of it establishing its first oversold clusters using weekly candles since it became a publicly-traded company.
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Stock Market Outlook Video (for September 8) – News and Analysis
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.
