Stock Market Trends- 08092023

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Good morning, everyone, and welcome to Wednesday morning.

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It's Stephen Whiteside here from theuptrend.

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com.

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In the premarket this morning, stock index futures are very quiet.

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They're slightly above fair value.

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Commodities are also quiet on Wednesday morning.

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We've got some inflation numbers coming

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out tomorrow, the market might be on pause until those numbers come out.

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Now, yesterday was an interesting day.

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We put in a lower-low, and we did end up with a lot of bullish reversal signals.

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It was a strange day.

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We were down in the premarket.

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We traded much lower during the day and then came back, still closing down at

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pretty well the same levels we were in the pre-market.

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Now we did generate a lot of bullish reversal signals.

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They're very weak bullish reversal signals because at the end of the day, most of the

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symbols that receive bullish reversal signals also closed lower on the day.

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Those are not the most impactful signals that you can get.

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If we had have closed higher on the day, then I would be beating the drums that we

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put in a bottom yesterday, but that is not the case at the present time.

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Now the opposite is also true.

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The VIX put in a bearish reversal day, but at the end of the day, still closed higher

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on the day did not break down and closed below the previous days low.

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So as a bearish reversal signal, again, it's weak.

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We're looking for more movement to the downside to tell us that yesterday was a

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top for the VIX, and we don't have that at the present time.

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Now, on Wednesday, we're looking for a

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close on the VIX below $14.44 to give us a new daily sell signal, and

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that would be supportive for higher stock prices.

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The Dow traded back into the channel yesterday.

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The S&P 500 traded up to the lower channel line.

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The Nasdaq didn't get that high, made in a new low yesterday.

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You'll see a lot of new lows for this move made on Tuesday.

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Then you can see for the iShares for the Russell 2000, definitely a lower low

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yesterday and closing below the lower channel line.

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Similar situation for the micro caps.

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Looking at the Canadian market, the iShares for the TSX60 put in a low

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yesterday, but higher than the low from Friday.

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That could mark a bottom.

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We'll just have to wait and see.

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Then banks were in the news yesterday.

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We got news out that very negative news on the US banking sector.

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At the end of the day, though, we did not

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see the banks or the regional banks actually generate a sell signal.

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In both cases, we traded through the lower channel line, but did not close below it.

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We're still on a buy signal here, even with that bad news.

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Now, Canadian financial is still on a sell signal here.

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Canadian bank is making a new low on Tuesday.

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The story hasn't changed.

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Bank of Nova Scotia is still the weakest, TD Bank still the strongest.

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The TD bank, we need to close below 85.40. We closed at 85.42, so just three cents

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away from generating a new sell signal on Wednesday.

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Looking at those big cap technology

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stocks, Apple had a very quiet inside day on Tuesday, so no change in trend there.

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No change in trend for Amazon still coming

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off that gap higher from a couple of days ago.

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Meta may generate a sell signal on Wednesday.

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We're looking for a close below $308.65.

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No change for Microsoft making a new low on Tuesday.

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No change for Alphabet, inside day on Tuesday.

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And no change for NVIDIA, very quiet trading on Tuesday.

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While Shopify headed down, where did it head to?

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Right down to our next price target of $75.

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And that was support back in May.

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And so we're going to be looking closely to see if that holds on Wednesday or if we

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break down and head towards that nice big open gap.

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Then looking at the Tesla inside day on Tuesday.

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A day of indecision for Tesla, still a lot of sell signal, no change there.

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Then looking at commodities, we saw copper drop sharply yesterday.

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It didn't really affect the mining stocks too much.

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Metals and mining ETF made a new low for this move before

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recovering and closing down just two cents on the day.

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Similar situation in Toronto with the

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Global Mining Index making a new low before recovering.

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And yeah, it was down 49 cents, but less than half a % on the day.

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Now, compare that to the GLD and the SLV,

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so gold and silver, both making new lows yesterday.

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And then if we look at the stocks, the XGD was down yesterday, didn't make a new low,

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unlike the GDX, which made a new low yesterday.

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And the SIL for silver miners also made a new low on Tuesday.

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Then looking at Barrick, the biggest Canadian mining stock did make a new low

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yesterday, but only closed down two cents on the day.

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And not as much love for new month making

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a new low, actually, gapping lower on Tuesday.

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Then looking at the energy sector, we saw

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the USO move up nicely, making a new closing high for this move on Tuesday.

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Gasoline was up, natural gas was up.

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Natural gas starting to break out above 7.42. Our next target is 7.81. That's

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going to be significant, first of all, if we can get up there.

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But secondly, are we going to break through it?

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Then, of course, if we want to be bullish

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on natural gas, we want to break through the high from back in June.

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Then looking at the stocks, US energy stocks had a wild day.

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They actually traded below the lower

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channel line before we're covering closing up just under half a %.

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On the TSX, we actually closed up one % on the day.

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The most actively traded energy stock on

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the TSX was Suncor and made a new closing high yesterday.

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In the US, the most actively traded energy stock was Southwestern Energy, and it

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closed basically unchanged just down a penny on the day.

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Still on a buy signal here, still closing above the upper channel line.

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Okay folks, that is all for Wednesday morning.

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It's fairly quiet out there still.

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DOW future is up 48 points.

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We may see some volatility in the energy

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sector as energy inventory has come out at 10:30 this morning.

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Enjoy the rest of your day and next time

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you'll hear my voice is on Thursday morning.