Market Direction: BEARISH alert
issued 8/10/2017
It seems the stock market correction is ending after 5 weeks of bearish behavior. Lookout for our conformation post to signal a change in the stock market direction.
This week, the S&P 500 opened with a strong sentiment. Geopolitical concerns cooled down and supported the market. North Korea didn’t test launch missiles and Hurricane Irma weakened, which increased the market’s risk appetite. Financial stocks rose due to support from upward movement in Treasury yields on Tuesday. Treasuries gained momentum after Secretary of the Treasury Steven Mnuchin commented that he was hopeful that tax reforms will be finalized by the end of 2017. On the economic data front, according to the U.S. Bureau of Labor Statistics, the US JOLTs Job Openings for July rose to 6.17 million, which is higher than analysts’ forecast of 5.96 million.
On September 12, the S&P 500 started the day higher and recorded a new record daily close. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On September 12, it rose 1.2% to 10.71. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
The NASDAQ Composite Index and the Dow Jones Industrial Average also started the day higher and closed the day at fresh highs. The NASDAQ Composite Index rose 0.34% and closed the day at 6,454.28. The Dow Jones Industrial Average rose 0.28% and closed at 22,118.86.
Our model is suggesting a market direction change is imminent...
It seems the stock market correction is ending after 5 weeks of bearish behavior. Lookout for our conformation post to signal a change in the stock market direction.
S&P 500
The
S&P 500 pulled back last week and resumed its upward movement by rising to
fresh record highs on Monday. Carrying forward the strength, the S&P 500
opened strong on Tuesday and rose as the day progressed. On September 12, nine
out of the S&P 500’s 11 major sectors moved higher. Strength in the telecom
services and financials sectors pushed the market higher, while weakness in the
real estate and utilities sectors limited the gains.
Market sentiment
This week, the S&P 500 opened with a strong sentiment. Geopolitical concerns cooled down and supported the market. North Korea didn’t test launch missiles and Hurricane Irma weakened, which increased the market’s risk appetite. Financial stocks rose due to support from upward movement in Treasury yields on Tuesday. Treasuries gained momentum after Secretary of the Treasury Steven Mnuchin commented that he was hopeful that tax reforms will be finalized by the end of 2017. On the economic data front, according to the U.S. Bureau of Labor Statistics, the US JOLTs Job Openings for July rose to 6.17 million, which is higher than analysts’ forecast of 5.96 million.
Volatility
On September 12, the S&P 500 started the day higher and recorded a new record daily close. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On September 12, it rose 1.2% to 10.71. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index and the Dow Jones Industrial Average also started the day higher and closed the day at fresh highs. The NASDAQ Composite Index rose 0.34% and closed the day at 6,454.28. The Dow Jones Industrial Average rose 0.28% and closed at 22,118.86.
$tockMarketDirection proprietary model is currently BEARISH. We strongly encourage you to monitor
positions closely, exercise proper money management strategies and follow us at $tockMarketDirection for ALERTS we
may issue advising a change in the current market direction. Stay tuned
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The all-time lows since our initial
recommendation to go SHORT
this market. Here is how the markets have performed:
Stock Market
Direction Recommendation (8/10/2017)
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Dow
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down 243.67 points a 1.12% gain
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8/21/17
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Nasdaq
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down 39.68 points a 0.64% gain
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8/21/17
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S&P 500
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down 20.86 points a 0.86% gain
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8/21/17
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Related Link: http://www.stockmarket-direction.com/
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