Market Direction Mid Week: Uncharted Territory

The trading strategy this website uses as its signature tool is our bullish and bearish alerts. This indicator has effectively been used with accuracy since 2011. The website helps our followers stay in tune with the stock market and profits have been amazing. This post provides a mid-week update on how the stock market has preform. At the bottom of this post are the all-time numbers since the current alert was made. The current bullish alert is moving in the right direction.

Market Direction: BULLISH alert issued 10/24/2019

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U.S. stocks ended steady Wednesday helped by good earnings reports from technology stocks and news that Chinese authorities were taking steps to contain a possible coronavirus pandemic, relieving investor fears about a threat to global economic growth.

What are major indexes doing?

The Dow Jones Industrial Average DJIA, -0.03%  slipped 9.77 points, or 0.03%, to 29,186.27 while the S&P 500 index SPX, +0.03%  closed up 0.96 points or 0.03% at 3,321.75. The Nasdaq Composite Index COMP, +0.14%   was up 12.96 points or 0.14% at 9,383.77.

On Tuesday, the Dow DJIA, -0.03% shed 152.06 points, or 0.5%, to 29,196.04, ending its five-day streak of gains. The S&P 500 index SPX, +0.03% fell 8.83 points, or 0.3%, to 3,320.79 and the Nasdaq Composite Index COMP, +0.14% closed down 18.14 points, or 0.2%, at 9,370.81.

What’s driving the market?

China’s National Health Commission confirmed more than 500 cases of the deadly coronavirus, which causes pneumonia, and 17 fatalities. However, prompt actions by China to contain the respiratory virus, including cutting off travel into and out of the city of Wuhan, where coronavirus originated, provided some comfort that the outbreak will be contained and not result in a pandemic that may affect global economic growth. Officials at the World Health Organization said the emergency committee is split on whether to declare the new coronavirus a public health emergency of international concern.

“It seems that risk sentiment is considering much of the widespread news and talk of a potential SARS 2003 outbreak as predominantly fear mongering, and that the situation will eventually return to normal, as it has historically,” said Bethel Loh, macro strategist at ThinkMarkets, in a note.

                         

DJIA, -0.03% In U.S. economic news, sales of previously-owned homes surged nearly 4% in December, confirming the rebound in the sector that many analysts believe will bolster economic growth in 2020.

The Dow has risen for five of the past six weeks, with a year-to-date return in 2020 of 2.27%. The S&P 500 has gained for two consecutive weeks, with a year-to-date return of 2.82% and the Nasdaq has risen for six straight weeks, with a year-to-date return of 4.58%.

“With 2020 off to a strong start and markets looking very overbought, many are asking when we might get a correctio,” Morgan Stanley equities analyst wrote. “We conclude that a correction is overdue, but will likely be contained to 5%.”

How are other markets trading?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, -1.13%   was little changed at 1.77%.

In commodities markets, oil futures ended lower on Wednesday, pressured by demand concerns linked to the coronavirus outbreak in China, as well as expectations for a weekly rise in U.S. crude inventories. West Texas Intermediate crude CLH20, -1.48%    slipped 41.64 to settle at $56.74.

Gold for February delivery GCG20, +0.09%   slipped $1.20 to settle at $1,556.70 as safe-haven investments became less attractive.

The U.S. dollar DXY, +0.02%   was nearly flat relative to a basket of its peers as measured by the DXY index.

In Europe, the Stoxx Europe SXXP, -0.08%  slipped 0.08% to 423.04 and the FTSE 100 FTSE, -0.45%   fell 0.5%.

In Asia overnight, the China CSI 300 000300, -1.78%   rose 0.4%, while the Hang Seng HSI, -1.65%   jumped 1.3%. 

$tockMarketDirection proprietary model is currently BULLISH. 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 and follow us. If you have a testimonial or comment of how this website has helped you we would like to know, email us. Share with friends.

The all-time highs since our initial recommendation to go LONG this market. Here is how the markets have performed:

Stock Market Direction Recommendation (10/24/2019)
Dow	up 2,568.09 points a 12.11% gain	1/17/20
Nasdaq	up 1,253.49 points a 19.91% gain	1/22/20
S&P 500	up 327.48 points a 14.68% gain	1/22/20

Related Link: http://www.stockmarket-direction.com/