- After gapping higher on an enthusiastic response to NVDA earnings, the S&P 500 sold off the the rest of the day closing near the lows, down 1.35%
- The VIX rallied to 17 as just 18% of stocks closed in the green; this was the third 1% sell-off we’ve experienced this month
- Oddly, despite the S&P 500 having an ugly bearish engulfing candle pattern, the intermediate posture moved to weakly bullish
- All four major U.S. equity indices are trading below their falling 30 day moving averages
- The Dow Jones Industrials Average was the day’s best performer (-1.08%), but it continues to have a strongly bearish posture
- The NASDAQ Composite was the day’s worst performer (-1.87%); it ended the day with a bearish engulfing pattern and has a weakly bullish posture
- The Russell 2000 was down 1.27% and has a strongly bearish posture
- Technically, the S&P 500 and NASDAQ Composite finished with bullish intermediate confirmation signals, but they’re pretty dubious set-ups
- Quality is back on top of the Factor Selector; Low Size remains at the bottom
- The 10 Year Treasury Yield rose to 4.23% and remains basically at highs not seen since 2007; it continues to have as strongly bullish posture
- All major bond categories fell, with the U.S. Long Term Government Bonds (-0.66%) falling the most
- The U.S. Dollar rallied 0.80% and is at levels not seen since last November; it continues to have a strongly bullish posture
- Gold fell 0.02% while oil rose 0.07%; oil is sitting right on its rising 30 day moving average
- Foreign stocks sold off today; Developed foreign (strongly bearish) fell 1.37% and Emerging Markets (strongly bearish) fell 0.38%
- Bitcoin is clinging to $26,000 and has a strongly bearish posture, while trading below its falling 30 day moving average
- All sectors except Technology (weakly bullish) have a bearish intermediate posture
- Other than Energy and Health Care, all other sectors are trading below their falling 30 day moving averages
- All sectors closed lower today, with Technology down the most (-2.3%)
- Our trade application example was selling a cash-secured put on Kellogg (K) due to its 20 year history of raising dividends, its cheaper than average valuation, its higher than average dividend yield, and its somewhat rare oversold weekly cluster signal
Please LIKE tonight’s Market Outlook video on Twitter and Facebook below:
08/24/23 - Watch the full #MarketOutlook video from@MarketScholars here:https://t.co/QzBIsj6Ln8$SPY $SPX $QQQ $IWM $RUT $DIA $DJIA $COMP $TLT $TNX $UUP $EEM $EFA $USO $GLD $BTC $NVDA $META $MSFT $AAPL $AMZN $TSLA $GOOG $NFLX $NKE $SCHW $DLTR $AMD $CPRT $MO $JPM $LRCX $DIS $K pic.twitter.com/QQUgUrsKQy
— Brandon Van Zee (@BrandonVanZee) August 25, 2023
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