- The S&P 500 rallied for the third straight day; this time the mega-cap tech stocks pushed it to an advance of 1.47%
- Oddly, just 65% of stocks closed positive (tremendously different than Tuesday’s similar rally with 94% in the green)
- This was pretty rare day throughout history where the S&P 500 was up this much on a day when the Dow Jones Industrials was down (-0.11%)
- The NASDAQ Composite had a breathtaking advance of 3.25%; the Russell 2000 was up 2.06%
- The Russell 2000 has been up at least 1% on 10 out of this year’s 22 trading days
- The Russell 2000 is now the best performing major index over the previous twelve months, overtaking the Dow today
- All four of the major U.S. equity indices have strongly bullish intermediate Market Forecast postures
- All four of the major U.S. equity indices are trading above their rising 30 day moving averages
- The Low Size factor is leading on the Factor Selector tool (confirming the Russell 2000 strength); the Low Volatility factor is lagging
- The U.S. Dollar rose 0.66% today, but it remains with a strongly bearish intermediate posture and is below its falling 30 day moving average
- Gold (-2.08%), Oil (-1.17%), Foreign Developed Stocks (-0.14%), and Foreign Emerging Stocks (-0.60%) all fell today in light of the dollar strength
- Bitcoin remains elevated at $23,500; it has a strongly bullish posture and is further evidence of this market’s willingness to take on risk
- High Yield Bonds rallied 0.57% and now have an overbought cluster
- In a bit of an oddity, the S&P 500 index does not have an overbought cluster, but the popular SPY ETF that tracks it does have a cluster
- The Communications sector had a day for the ages; it finished higher by 6.57% (due to one of the best day’s in history for META)
- Discretionary (+3.06%) and Technology (2.73%) also had huge days, but disappointment entered into them after hours with earnings let-downs
- The Real Estate sector (+2.30%) has been a quiet work-horse of this market after being an underperformer late last year
- Energy was the day’s worst performing sector (-2.28%) and is currently the only sector with a weakly bearish posture
- Staples (-0.86%) and Health Care (-0.68%) were the only two other sectors lower on the day
- Our trade application example featured a bullish swing trade on Abbott Labs (ABT) due to its outperformance versus its sector and its ability to bounce up and off its rising 30 day moving average with a bullish Near-Term and Intermediate posture
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Watch the full 02/02/23 #MarketOutlook video from @MarketScholars for free here:https://t.co/PWgJXJl48w
— Brandon Van Zee (@BrandonVanZee) February 3, 2023
Mentioned: $SPY $SPX $QQQ $IWM $RUT $DIA $EEM $EFA $GLD $USO $TNX $BTC $UUP $AAPL $AMZN $GOOGL $GOOG $QCOM $F $SBUX $CLX $META $GILD $CRSP $HBI $CVX $ABT
Intro attached‼️ pic.twitter.com/rErn01LIx7
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