March 9, 2021

Stock Market Breadth Continues To Improve

Stock Market Breadth Continues To Improve

Stock markets are trading higher today and traders are also pushing the tech savvy index, the Nasdaq Composite futures up as well. Sector rotation is still very much the name of the game among investors as they want the biggest bang for their buck.

Traders know that the upcoming US stimulus package is going to strengthen the US economic recovery, and this has made them rotate back to value stocks. Having said that, many are still worried about the long-term borrowing cost creeping higher which could be a threat for equities. But, it is also a reality that interest rates are never going to stay at their ultra-low levels forever and traders need to be aware of this.

Asian Markets 

The Asian stock market traded mostly highr on Tuesday. The Nikkei index advanced 0.99%. The HSI index increased by 0.96%, while the ASX index gained 0.47%. The Shanghai index dropped by 0.77%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones‘ market breadth gained further momentum yesterday. 77% of the Dow Jones stocks traded above their 200-day moving average

The S&P 500 stock breadth also displayed strength yesterday. 80% of the shares traded above their 200-day moving average. 

Dow Jones Futures Today

The Dow Jones futures are trading higher today. In terms of economic data, investors will be looking at the NFIB Small Business Index data which is due later in the day. The forecast for this data is 96.7, while the previous reading was at 95. 

The Dow Jones futures is on track to continue its upward journey today. The Dow Jones has pierced the upper level of the Bollinger bands once again on the daily time frame. However, this piercing of the Bollinger Bands is not in line with the RSI—meaning the RSI is still far from reaching its overbought level. Thus, we could see the Dow Jones continue to move higher before we see any meaningful retracement.

Overall, the bullish trend is still very much in place as the price is trading above the 50, 100 and 200-day simple moving averages on the daily time frame.

The near term support is at 31,419, while the resistance level is at 32,271.    

Stock Market Rally

The S&P 500 stock index closed lower yesterday; the index declined by 0.54%. The tech sector led the index higher and 4 out of 11 sectors closed lower. 

The Dow index advanced yesterday; the Dow stocks moved the index higher by 0.97%. 25 shares advanced, while 5 shares closed lower. 

The NASDAQ composite, a tech-savvy index, closed sharply lower by 2.41% yesterday.

S&P 500 Leaders and Laggards: ViacomCBS and Monolithic

ViacomCBS stock contributed the biggest gains, soaring 12.7%. Monolithic Power stock was the largest drag; it fell by 9.27%. The S&P 500 stock index is up 1.74% so far this year.

Dow Jones Leaders and Laggards: Disney and Apple  

Disney stock provided the biggest help for the Dow Jones; it advanced by 6.27%, while Apple stock was the largest decliner, it fell by 6.27%. 

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