- After being closed yesterday for a holiday, the markets came back with pent-up selling desires and fell strongly across the board; the S&P 500 was lower by 1.84%
- 89% of components within the S&P 500 finished lower today; the selling was not only deep, but also broad and wide
- The S&P 500 still has a weakly bearish intermediate posture according to the Market Forecast indicator; it is trading below its rising 30 day moving average
- The Dow Jones Industrial Average sold off the least amount today (-1.51%); it has a weakly bearish posture and is trading below its rising 30 DMA
- The NASDAQ Composite fell 2.6% and basically close at new 3-month lows; it has a strongly bearish posture and is trading below its falling 30 DMA
- The Russell 2000 sold off by 3.06% with a strongly bearish intermediate posture; it is trading at 3 month lows and is below its falling 30 day moving average
- All four major indices have a “3 Red Arrows” signal; and the VIX rallied aggressively up to 23
- Yields spiked once again; the 10 Year U.S. Treasury Yield ended at 1.86% (multi-year high) and has an overbought cluster signal
- Long Term U.S. Treasuries fell 1.41%, foreign bonds and high yield bonds each fell 0.49%; all bond categories have strongly bearish intermediate postures
- The U.S. Dollar snapped back 0.63%, its second straight positive session since putting in back-to-back oversold clusters
- Gold was down 0.17%, but oil bucked the Dollar’s strength and closed at fresh yearly highs by advancing 1.67% (both commodities have strongly bullish postures)
- Emerging markets stocks fell 1.78% today but remain with a strongly bullish intermediate posture (unlike U.S. stocks and foreign developed stocks)
- Energy remained atop the Sector Selector tool, with Financials and Consumer Staples rounding out the top 3
- Energy was the only sector to finish positive today (+0.40%); Technology was the worst performer (-2.40%)
- Energy, Financials, and Staples are the only sectors to have strongly bullish intermediate postures
- Our trade application example featured buying a long call that doesn’t expire for over two years on Alibaba (BABA) as a speculative turnaround play due to oversold cluster signals late last year and outperformance above its rising 30 day moving average so far in 2022
Here's the intro of today's #MarketOutlook video from @MarketScholars
— 𝐁𝐫𝐚𝐧𝐝𝐨𝐧 𝐕𝐚𝐧 𝐙𝐞𝐞 (@BrandonVanZee) January 19, 2022
Watch the full video here:https://t.co/hx4Ec3kHjZ
Mentioned: $SPY $SPX $QQQ $COMP $IWM $RUT $UUP $TLT $TNX $USO $EEM $EFA $VIX $STNE $EDIT $MSFT $ATVI $SBUX $DFS $BRK.B $CHTR $ARKK $VZ $AMZN $GS $CAT $BABA pic.twitter.com/9oe3niiGLH
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