Financial World US Stock News US stock markets are rising, with major benchmark indexes and some other market indicators showing that the rebound in January may give way to a more lasting upward trend.
After the stock market suffered a heavy blow in October, the persistence of the latest round of upward craze cannot be 100%. So far, the stock market is still under pressure from the Fed's slowdown in interest rate hikes and disputes, but some indicators can still help market technicians confirm the current bullish stock trend:
S&P 500
S&P 500 rose 1.3% on Tuesday, and investors are expecting the index to close above the 200-day moving average at 2,743.38 points to help determine whether the index is rising in the long term. The index closed at 2744 points on Tuesday, slightly above this mark.
Dow Jones market data shows that this is the longest time the index has fallen below the 200-day average since the 48-day trading cycle ended in March 2016, with a length of 46 trading days. Market technicians use moving averages to help judge the long-term and short-term bull and bear market momentum of an asset.
Market technicians said that so far, 2,743-2,744 points have been the resistance level, and the index closed near this level in recent days and has a downward trend. The breakthrough could be significant, with Michael Kremer, an analyst at Mott Capital Management, predicting that the figure will climb to 2,800 points.
Meanwhile, the Dow Jones Industrial Average rose more than 370 points on Tuesday, exceeding the long-term trend line.
Nasdaq Out of Bear Market
is usually used as an indicator of the health status of technology stocks and Internet-related stocks. The Nasdaq Composite Index closed on December 21 and fell more than 20% from its all-time high set on August 21, which is in line with the generally accepted definition of a bear market. The index continued to decline on December 24, hitting a closing low of 6192.92 points, and then rose sharply, now about 19.8% higher than its Christmas Eve low.
Nasdaq Composite Index closed at 7,431.50 or above on Tuesday, up 1.46%, up 20% from its recent low, which means that Nasdaq Index will exit the bear market.
Dow Jones data shows that after the stock market exited from bear markets in the past four times, it has seen a rise in the next six months.
Instinet sales trader and technical analyst Cappelry said the Russell 2000 index has been soaring since its record low on December 24, performing better than the other three major stock indexes. According to FactSet data, the Russell 2000 index has risen 21.2% since its bottom on Christmas Eve.
When small-cap stocks rise together with large-cap stocks, it is usually regarded as a bullish signal in the market.
Cappelli said that the rise of the Russell 2000 index is forming a reverse head and shoulders bullish pattern:
$
$0 was in a negative range all day on Tuesday, ending its eight consecutive days of gains. The strengthening of the US dollar has always been a feature of the market in February, supported by safe-haven bets. The dollar fell on Tuesday, helping boost intraday stocks.
Although the stronger dollar is often advertised as a demonstration of economic strength, the stronger dollar may have adverse effects on companies that do most of their business outside the United States. Because the stronger dollar will increase the relative cost of commodities.
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