The S&P 500 Index INDEXSP: .INX fell by 0.36% on Wednesday. The stock index ended the day with a bullish intermediate confirmation signal, although the set-up isn’t ideal for reasons mentioned in today’s video.
The Dow Jones Industrial Average INDEXDJX: .DJI and NASDAQ Composite INDEXNASDAQ: .IXIC now have “weakly” bearish intermediate posture after today’s sell-off.
The Russell 2000 was the strongest performer today (+0.05%) but remains the only major index with its 10 week moving average still below its 40 week moving average.
The Dow Jones Industrial Average no longer has a “3 Green Arrow” signal because its price closed below its 30 day moving average.
The U.S. Dollar bounced today after receiving oversold cluster signals the prior two trading days
Foreign markets have been strong on a relative basis, with countries like Japan, Germany, Taiwan, Mexico, Sweden, and South Korea all hitting 3-month intraday highs.
Only Argentina and Switzerland currently have bearish intermediate postures; Brazil has moved from underperforming to outperforming within the last couple of weeks.
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Stock Market Video – October 22, 2019
Real Estate and Utilities continue to be in longer-term uptrends with Industrials perking up as well; those sectors were in the top 3 slots of the most recent Sector Selector.
Communications, Technology, and Materials currently have weakly bearish intermediate postures.
Our trade application example featured selling a bear call spread on Lululemon (LULU) now that it has formed a bearish near-term divergence on a daily chart.
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