Unemployment claims fell and stocks surged. This helped the S&P 500 Index jump by 1.06% today and once again display a strongly bullish intermediate posture.
Market breadth remains reasonably strong, with 3.5 stocks rising for each 1.5 stocks that fell today.
The Dow Jones Industrial Average rose 0.55%, it is trading back above a rising 30-day moving average and has a weakly bullish intermediate posture. The NASDAQ Composite vaulted 1.77%; that pushed its posture back to weakly bullish, but it’s still trading below a falling 30 day moving average. The Russell 2000 rose 0.64%; it also now has a weakly bullish intermediate posture, despite still trading below a falling 30 day moving average.
All four major stock market indices did a good job of protecting their lows from May 12th. All four major indices also have a mix of green and red arrows, with the S&P 500 looking the most promising to get back to “3 Green Arrows” next week.
Bitcoin rose and closed just above $40,000 after several days of extreme volatility; expect resistance if it can get back to $47,000 on any oversold near-term bounce.
Gold has been acting inversely to Bitcoin recently and it closed near a 3-month high, its posture remains strongly bullish.
Health Care (+1.05%) and Real Estate (+1.24%) are looking particularly interesting with strongly bullish postures and bouncing up from rising 30 day moving averages
Our trade application example featured selling a bull put spread on ViacomCBS Inc (VIAC) due to a long period of consolidation after an abrupt chart dislocation; it now has a weakly bullish posture and is trading above its 30 day moving average for the first time since March
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Stock Market Outlook Video – News, Analysis, & Insights – May 20
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.
