Stocks are trading sideways thus far this week due to the negative impact regarding COVID and news the Chinese are moving to clampdown on internet interests. That said, the major US stock market indices closed well off their lows Tuesday and are looking to trade higher this morning.
Despite Tuesday’s sell-off, the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite have strongly bullish Market Forecast intermediate postures.
The Dow Jones Industrial Average and Nasdaq Composite continue to trade above the rising 30 day moving average.
On the flip side, the Russell 2000 continues to stumble and has a strongly bearish posture. The Russell 2000’s price chart looks quite heavy and the index trading below its falling 30 day moving average. Further, the Russell 2000 is the only major U.S. stock market index that does not have a “3 Green Arrows” signal.
Volatility has increased with the VIX Volatility Index closing at 19.36 on Tuesday (but that’s still a long ways from its highs two weeks ago near 25).
Real Estate, Health Care, and Technology all continue to have excellent trends in place and continue to have strongly bullish intermediate postures. All sectors in the United States now have either a strongly bullish or weakly bullish intermediate posture.
Elsewhere…
Emerging Markets now have an oversold cluster signal. This is due to the relentless selling of chinese stocks. The price of Gold has firmed up and now has a weakly bullish posture. That said, Gold appears to be riding its 30 day moving average lower.
Bitcoin rallied again after yesterday’s sizable move (from an untrue Amazon rumor); but the speculative asset class now looks interesting as a bullish bounce candidate
Our trade application example featured a bullish trade known as a cash-secured put sale on Smucker (SJM) due to its weakly bullish intermediate posture, along with its current positioning on our long-term dividend growth investing chart, suggesting that the yield is historically attractive
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Stock Market Outlook Video – News, Analysis, & Insights for July 28
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.
