The S&P 500 fell 0.75% in Tuesday’s trading. While it did bounce off the lows of the day, there was a decidedly bearish tilt to the day.
For the first time in over a week, the S&P 500 is back below its 30-day moving average (which is barely rising).
The S&P 500 and Dow Jones Industrial Average now have weakly bearish intermediate postures according to the Market Forecast indicator.
The Dow Jones fell 0.30% on Tuesday; even with the decline, the Blue Chip Index outperformed as traders sought relative safety.
The Dow Jones Industrial Average, NASDAQ Composite, and Russell 2000 are all trading below their falling 30 day moving averages.
The NASDAQ Composite and Russell 2000 both have strongly bearish intermediate postures.
The NASDAQ Composite fell the hardest on Tuesday (-1.14%); of note, many of the mega-cap technology-focused leaders struggled today.
The Russell 2000 is the worst index from an intermediate perspective; Tuesday marked its fourth straight sell-off and it’s near multi-month lows.
Energy, Technology, and Discretionary were near the top of the Sector Selector last week, but changes are afoot as defensive sectors have started to rise.
It’s difficult to find strong trending charts right now; a couple less-obvious places to find them currently might be within foreign bonds and the U.S. Dollar.
Interest rates, oil, gold, preferred stocks, bitcoin, and foreign stocks are all rolling over and have bearish intermediate postures.
Our trade application example featured a speculative swing trade on Agnico Eagle (AEM) due to its recent oversold cluster signals on weekly candles leading the stock to a reasonable dividend yield; there’s also a potential double bottom attempting to be formed over the past few weeks.
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Stock Market Outlook Video (for December 15) – News and Analysis
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.
