The S&P 500 Index moved more than 1% (up or down) for the fourth straight session on Tuesday. This is the first time this has happened since November. And stock market futures for Wednesday look volatile again …
While the S&P 500 sold a bit at the close, it still managed a decent 1.05% gain on Tuesday and almost wiped out Monday’s losses. 73% of the S&P 500 components closed higher, with some of the only consistent sales occurring in the real estate and utilities sectors.
Despite Tuesday’s rally, the S&P 500 continues to have a strongly bearish intermediate position according to the Market Forecast technical indicator.
The Dow Jones Industrial Average also rallied (+ 0.92%) causing a slight change in intermediate posture from strongly bearish to slightly bullish. The Dow Jones Industrial Average got a green arrow on the stochastic indicator.
The NASDAQ Composite was the biggest winner of the index for the day with a 1.25% snapback, but this is likely due to the fact that it has been the worst performer in recent weeks. The Russell 2000 was the smallest winner of the day (+ 0.49%); it continues to have a weak bearish position and is the only index with a rising 30-day moving average.
Commodities and currencies …
Bitcoin rose 5% and suddenly finds itself with a 3 month breakout and a strongly bullish middle posture. The US dollar and Treasury yields remain correlated; both closed higher and continue to have strong bullish positions. Gold fell 0.47% in the shadow of the strength of the dollar, but it remains in its weakly bullish position (despite a falling 30-day moving average).
Oil has been one of the leaders in this market; it closed for the fourth consecutive session and reached multi-month highs with a strongly bullish posture. Energy and Financials advanced in the most recent sector selector and ranks # 1 and # 2, respectively.
Commodities have clearly outperformed stocks and bonds since August 20 according to our ratio charts.
Our sample trade application exhibited a bullish swing on Dynavax Technologies (DVAX) due to its short-term bullish divergence and rebound from its rising 30-day moving average.
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