- The S&P 500 had a relatively quiet day; it closed lower by 0.58%, with 55% of its components closing in the red
- The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite all closed with oversold clusters
- The S&P 500, Dow Jones Industrial Average, and NASDAQ Composite all have strongly bearish postures and are trading below their falling 30 day moving averages
- We saw a continued role reversal over the last couple days with the Dow Jones (-0.75%) selling off harder than the more speculative NASDAQ Composite (-0.26%)
- The highly speculative ARKK fund of innovative companies rallied by over 4% and continued to hold above their 2020 lows we discussed last week
- The Russell 2000 has taken the leadership baton, it was up 0.08% today and now has a weakly bullish intermediate posture (it’s well off its lows from last week)
- It’s options expiration tomorrow, so there is the possibility of volatility as traders try to close out contracts and position themselves acceptably heading into the weekend
- The U.S. Dollar (-1.04%) fell for its fourth day out of the last five; despite still being above its rising 30 day moving average, it now has a weakly bearish posture
- Strength in foreign stocks emerged as a result of recent Dollar weakness; developed foreign stocks (+0.96%) and emerging markets (+1.59%) have a weakly bullish posture
- The 10 Yr. U.S. Treasury Yield fell for the seventh time in the last nine days; it ended at 2.85% and now has a weakly bearish intermediate posture
- Long Term Treasuries (+0.24%) have caught a slight bid over the past week as the stock market chaos has led some capital allocators into the bond market
- Oil rallied 1.63%; many have attempted to write it off, but the strength remains quite apparent and its still above its rising 30 day moving average
- The Factor Selector showed the exact same ranking lineup as the previous week; Dividend Yield still on top and Momentum still on the bottom
- The biggest sector change recently has been the major sell-off in the Consumer Staples sector; it has a strongly bearish posture and was today’s worst performer (-1.78%)
- Materials (+0.71%) was the day’s best performer; it joins the Health Care and Utilities sectors with weakly bullish postures
- Energy (-0.37%) fell today, but remains the only sector in an uptrend with a strongly bullish intermediate posture
- Our trade application example featured selling a bear call spread on AbbVie (ABBV) due to a negative shift against Dividend Aristocrats in recent days; it is falling down and away from its 30 day moving average and has a Bearish Near-Term Divergence signal
Here's the intro of today's #MarketOutlook video from @MarketScholars
— 𝐁𝐫𝐚𝐧𝐝𝐨𝐧 𝐕𝐚𝐧 𝐙𝐞𝐞 (@BrandonVanZee) May 20, 2022
Watch the full video for free here:https://t.co/4Dkn1Mo4NK
Mentioned: $SPY $SPX $QQQ $IWM $RUT $UUP $TNX $TLT $EEM $EFA $USO $WMT $TGT $SNPS $CSCO $KO $PG $ARKK $XLP $BBY $CLX $CL $FXI $KMB $XLE $XLB $ABBV pic.twitter.com/X8BqMzlsPF
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