The S&P 500 Index is in rally-mode after rising 1.78% as Americans headed to the polls. It is the 2nd largest election day rally in history for that index.
It is also significant that 90% of the stocks in the S&P 500 closed higher today.
The biggest winner is the small cap universe, with the Russell 2000 flipping back to a strongly bullish intermediate posture after rallying 2.91% today. The Russell 2000’s rally was strong enough to see red arrows switch to green arrows on its 30-day moving average and Stochastic indicator.
The Dow Jones Industrial Average saw its intermediate posture flip back to weakly bullish after its 2.06% rally, but it remains below its 30-day moving average.
The NASDAQ Composite and S&P 500 continue to have a strongly bearish intermediate posture at this moment.
Interest rates continued their march higher and Long-Term U.S. Treasuries continue to have a strongly bearish posture. The U.S. Dollar has been giving mixed/sideways signals lately, which has caused a similar reaction in gold. Materials, Industrials, and Discretionary continue to be the leaders on the Sector Selector ranking system. Energy was the only sector to close lower today; Industrials and Financials both closed higher by over 2%.
Emerging markets struggled on a relative basis today; potentially due to the surprise halting of a major Chinese fintech IPO.
Our trade application example featured selling an iron condor on the SPDR Health Care ETF (XLV) due to it currently trading in the middle of a trading range that has been established over the previous 6 months.
Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.
Stock Market Video – News, Analysis & Insights for November 4th
Twitter: @BrandonVanZee and @Market_Scholars
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
