The Russell 2000 Index lead the market higher on Tuesday with an advance of 1.71%, with the S&P 500 Index up 0.71%, and the Dow Jones Industrial Average up 0.55%.
All four major U.S. stock market indices have strongly bullish intermediate postures and are trading above rising 30 day moving averages.
None of the four major U.S. stock market indices currently have a “3 Green Arrows” signal, largely due to a loss of momentum using the MACD Histogram.
All major indices have “golden crosses” in the 10/40 moving average weekly crossover method.
The U.S. Dollar fell to its lowest level in many months, which had a positive impact on foreign securities and commodities.
Emerging markets stocks staged a massive rally based upon a bevy of positive economic and corporate reports; its main index closed up by 2.40%. Even the frontier markets have been hot lately, with African e-commerce company Jumia (JMIA) showing up at the top of our new Stock Selector tool.
Commodities surged 2.4% on Tuesday with Oil and Gasoline both up over 4% (largely due to OPEC news).
While the metals didn’t ramp as high as the energy complex, there are some great-looking charts in that area (Platinum, Copper, and Silver). Corn rallied for its 14th straight trading session and Sugar is also near its recent highs.
Long-term government bonds fell 0.74% and continue to have a strongly bearish posture.
With oil rallying furiously, it was no surprise to see Energy lead from a sector perspective (+4.48%).
Our trade application example featured selling a bear call spread on Long-Term Government bonds (TLT) due to its bearish intermediate posture and its inability to move consistently above its falling 30 day moving average.
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Stock Market Video – News, Analysis & Insights for January 6
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