Mid-Week Market Outlook: Stocks Rock… and Roll Over

After a healthy bounce to start the session, stocks gave back their gains and closed mostly flat to end the day.

The S&P 500 (NYSEARCA: SPY) finished lower by 0.04% and has a strongly bearish intermediate posture according to the Market Forecast indicator.

The Dow Jones Industrial Average (NYSEARCA: DIA) and Russell 2000 (NYSEARCA: IWM) each finished lower by about 0.20% and also have strongly bearish intermediate postures.

The NASDAQ Composite actually closed higher by 0.16% today but continues to have a strongly bearish posture as well.

The Dow Jones Industrial Average is the only major U.S. equity index without a death cross, but odds suggest it will join the other indices with that bearish condition in coming weeks.

Today’s video discusses each of these in depth, offering analysis and trading forecasts. We also look at sectors and our stock trade of the day.

Mid-Week market Video – December 11, 2018

Some additional insights from today’s stock market outlook video:

  • The yield curve inversion is only affecting the 5yr and 2yr Treasuries presently, but stocks in the Financial sector have really been struggling as a result
  • According to the Sector Selector, Utilities and Real Estate are leading the stock market on a relative basis due to their defensive characteristics and interest rate sensitivity; Energy and Financials are the laggards
  • The U.S. Dollar and gold have both been resilient lately as traders are leaning towards them as safe havens
  • Developed stock markets in Europe are mostly mired in downtrends; meanwhile, Brazil is retaining some strength near the top end of its 3-month range
  • Our trade application example focused on buying a put spread on VMC within the struggling Materials sector

 

Get market insights, stock trading ideas, and educational instruction over at the Market Scholars website.

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.

NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER.



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