The S&P 500 Index INDEXSP: INX was down 0.32% today. And the stock market continues to grapple with discussions of an inverted yield curve, correction, recession, and courtroom settlements.
All four major U.S. stock market indices are maintaining their bearish intermediate postures according to the Market Forecast technical indicator.
The Russell 2000 Index INDEXRUSSELL: RUT has been hit the hardest; the small cap stock index ended at its lowest level in 7 months and now has an oversold cluster signal to go along with its stock market index correction.
The falling 30 day moving averages continue to be major hurdles in any future stock market rally attempt.
The NASDAQ Composite INDEXNASDAQ: .IXIC and Russell 2000 have “3 Red Arrows” signals.
The Russell 2000 is the only major U.S. index with a 10-40 weekly “death cross”; it is the only major index to currently have a strongly bearish Market Forecast intermediate posture using a weekly candle.
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Stock Market Video – August 27, 2019
In a continued theme of recent months, yields were down and bonds were up; the 10-year U.S. Treasury yield closed at a recent low of 1.49%.
Gold continues to march higher; whether it’s GLD or the senior miners that make up GDX, the charts are consistently bullish.
Major foreign stock markets look fairly ugly; a few have bullish intermediate postures but they are all trading below falling 30 day moving averages.
The defensive sectors(Real Estate, Utilities, Staples) in the U.S. are the only ones with bullish intermediate postures; those three sectors also landed at the top of the Sector Selector rankings.
Our trade application example featured selling an iron condor on Microsoft (MSFT) in the hopes that high volatility plus a sideways channel equals a successful trade outcome.
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