The S&P 500 Index finished flat Tuesday (-0.02%) and appeared to be in a holding pattern awaiting further information from the Federal Reserve (FOMC meeting Wednesday) as well as more earnings announcements.
Similarly, the Dow Jones Industrial Average (+0.01%) barely budged.
The Russell 2000 outperformed slightly (+0.14%), but could possibly be stalling out at a key point in a reversal price pattern. The NASDAQ Composite was the day’s laggard (-0.34%) as it turned lower just before touching an all-time high established in February.
All four major stock market indices have strongly bullish intermediate postures and the S&P 500 Index and NASDAQ Composite both closed with bullish intermediate confirmation signals. The Russell 2000 has a “3 Green Arrows” signal but it’s not ideal due to its falling 30 day moving average.
The 10-Year U.S. Treasury Yield finished higher at 1.62%; the long term U.S. Treasuries ETF closed lower by 0.87% but still has a bullish intermediate posture. The U.S. Dollar rose slightly; it established an oversold cluster signal Monday for the first time in months and will be worth watching for a short-term bounce.
Gold (-0.25%) and Oil (+1.84%) continue to have strongly bullish intermediate postures.
Energy continues to be the only U.S. sector with a strongly bearish intermediate posture, but Staples and Utilities now have a weakly bearish posture. With interest rates rising today, it wasn’t surprising that Financials was the top sector (+0.79%).
Our trade application example featured selling a bull put spread on the Long-term U.S. Treasury ETF (TLT) due to its bullish intermediate confirmation signal near a support level.
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Stock Market Outlook Video – News, Analysis, & Insights – April 27
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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.
