The S&P 500 Index achieved its first all-time high (both closing and intraday) since prior to the COVID19 crash earlier this spring; it finished up by 0.23%.
The NASDAQ Composite was today’s leader (+0.73%) and also broke out to new all-time highs.
Strangely, the Dow Jones Industrial Average and Russell 2000 closed lower.
Upon further examination, well over half of the components within the S&P 500 actually closed lower, suggesting mega-cap tech stocks carried the day.
All four major U.S. stock market indices have strongly bullish Market Forecast intermediate postures; a bullish intermediate confirmation signal was produced on the Russell 2000.
The NASDAQ now has a “3 Green Arrows” signal; meanwhile, the Russell 2000 lost its own signal (both were the result of MACD Histograms heading in opposite directions).
All four major U.S. stock market indices have golden crosses on the 10/40 weekly moving average crossover method.
Stock Market Video – August 18, 2020
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The U.S. Dollar fell for the fifth straight session and remains with a strongly bearish intermediate posture; it finished with an oversold cluster.
Precious metals like gold and silver continued their bounce higher from last week and both have strongly bullish intermediate postures.
Preferred stocks are in a strong trend, but closed with an overbought cluster today.
Emerging markets stocks have outperformed their developed markets counterparts over the past 3 months.
High yield bonds are exhibiting attractive bounce qualities off of the rising 30 day moving average.
Energy was the worst sector today; Communications was the best.
Financials, Energy, and Utilities currently have weakly bearish intermediate postures; Health Care has falling the Sector Selector rankings.
Our trade application example featured selling a bear call spread on AbbVie (ABBV) due to its bearish Near-Term divergence and its struggle to get above its falling 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.
