The S&P 500 Index rose by 0.80% on Thursday and closed near session highs. And that momentum is spilling over into early Friday action as futures are pointing higher. The financial markets are swinging higher or lower based upon the prospect of getting a government stimulus deal approved.
This week’s biggest winner is the Russell 2000 Index, which closed higher by 1.09% on Thursday and while hitting a multi-month highs.
All four major U.S. stock market indices have bullish intermediate postures (the Russell 2000 and Dow Jones Industrial Average are considered strongly bullish). The U.S. stock indices also have a “3 Green Arrows” signal now that they are all trading above their 30 day moving averages again.
From a longer-term perspective, all four continue to have bullish crossovers on the 10/40 weekly moving average system.
Looking at our unique select indicators, he Small Size factor has been quietly rallying and is trailing only the Momentum factor over the past month.
It’s also worth noting that Industrials are trading at their highest level since February.
In commodities, Crude Oil had a large move Thursday and now has a weakly bullish posture and is trading above its 30 day moving average; gold remains with a bearish posture despite a small rise today.
The U.S. Dollar is seeing a small drop but is stabilizing around its 30 day moving average.
Interest rates took a breather and dropped to 0.76 on the 10-year Treasury yield; bonds rose (foreign bonds appear stronger than domestic bonds)
Foreign stocks are outpacing U.S. stocks in the last couple weeks, but U.S. stocks still command a lead over the last 3 months.
Our trade application example featured a bullish swing trade on Brown Forman (BF/B) due to its new bullish Near-Term posture and bounce up and off of a rising 30 day moving average.
Stock Market Video – News, Analysis & Insights for October 9th
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