The S&P 500 Index careened 1.9% on Tuesday. While that percentage wasn’t as bad as Friday’s loss, market breadth was worse with 98% of stocks closing in the red.
Only seven stocks in the S&P 500 Index closed higher Tuesday, but because one of them was mega-cap Apple (AAPL), it helped offset even further weakness at the index-level. Futures are trading higher overnight, so perhaps Wednesday sees a bounce.
File this under strange: “Safer” areas like Dividend stocks, defensive sectors, the U.S. Dollar, and gold could not withstand Tuesday’s market storm.
The S&P 500 has a weakly bearish intermediate posture according to the Market Forecast indicator and is now trading below its rising 30 day moving average.
The Dow Jones Industrial Average has been performing poorly for three weeks and fell 1.86% today; it’s below a falling 30 day moving average and has a strongly bearish posture.
The NASDAQ Composite was today’s leader, but still fell 1.55%; it has a weakly bearish posture and is trading below its rising 30 day moving average.
The Russell 2000 was the day’s laggard (-1.92%); it is trading below its falling 30 day moving average and has a strongly bearish intermediate posture.
All four major U.S. stock market indices saw wider trading ranges today than is typical, and all now have a “3 Red Arrows” signal.
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The U.S. Dollar fell 0.46%, but due to its extremely strong recent price action, it continues to have a strongly bullish posture and is trading above its rising 30 day moving average.
Gold fell 0.67% today; it has now fallen eight days in a row and has a strongly bearish intermediate posture and is trading below its falling 30 day moving average. Oil plunged yet again and has a strongly bearish posture; it was down 4.5% and actually touched a 3-month low during the trading session despite being strong just a month ago.
Bitcoin was relatively flat over the last 24 hours, but continues to trade below its falling 30 day moving average and still has a strongly bearish posture
Our trade application example featured selling a cash-secured put on Bristol-Myers Squibb (BMY) as a way to buy the stock at a historically attractive dividend yield in January, due to its second straight oversold weekly cluster and the expectation that the company will increase its dividend next month
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Stock Market Outlook Video (for December 1) – News and Analysis
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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.
