Stock Market Outlook 03062024

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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. While it is very early in the morning,
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stock index futures are trading above fair value.
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Commodities are mixed with crude oil
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higher while gold is lower in the pre market on Wednesday morning.
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Well, yesterday we saw a little bit of tension in the market.
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The VIX is back on a buy signal as of Tuesday's close.
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Things would change on Wednesday with a close below 13.
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59.
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Now, it was the Dow that rolled over yesterday.
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The Nasdaq was the biggest loser, but the Dow actually generated a sell signal.
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Now again, for people that are new, this is a short term sell signal.
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More conservative investors are going to
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need more evidence before they start selling.
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The Dow Diamonds stuck up here at 390.
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63.
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And as you can see on the midterm chart,
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we have a little ways to go before we actually generate a sell signal.
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It was all about technology stocks yesterday.
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Intel was the biggest loser on the Dow.
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It's still on a buy signal.
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No change there.
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Salesforce was the second biggest loser, down over 5% on the day.
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Trading down to the lower channel line.
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Still looking for a close on Wednesday
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below 296 24 to give us a new daily sell signal.
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We do have a change in trend for Microsoft.
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Back on a sell signal, putting in a lower high.
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We had trouble getting over 421. 80.
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That is still a major area of resistance for Microsoft.
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Apple continued lower down nearly 3% on
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the day, heading towards our next target of 168.
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75.
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Then we've got Unitedhealth Group making a new low for this move on Tuesday.
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Now one stock that the market is still
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concerned about, of course, is New York Community Bank Corp.
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It made a low on Monday inside day on Tuesday.
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Inside days are basically pause days, so that has not been resolved yet.
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And then what did work on Tuesday?
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Well, Nvidia actually closed higher on the day.
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It is trading up in the pre market this morning.
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Our next price target is 875, which we've previously hit.
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It is trading below that level in the pre market on Wednesday morning.
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Now Shopify has been on a sell signal for a few weeks now, so no change there.
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We've got Tesla back on a sell signal on Monday, fallow through to the downside on
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Tuesday, looking to see if it can hold the February low.
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Let's finish off this morning's
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presentation, taking a look at commodity stocks.
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And we'll start off with the miners.
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And we've got copper still on a buy signal here.
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Copper miners traded down to the lower channel line yesterday.
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So certainly a potential for a sell signal on Wednesday.
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We had a lot of bearish reversal signals on Tuesday.
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The price of gold wasn't.
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The GLD is trading up towards 200.
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It's trading slightly lower in the pre market this morning.
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Now, we do have a bearish reversal signal for the gold miners.
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It traded up to the previous high and pulled back.
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Now, it did not close lower on the day and
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it did not close below the previous day's low.
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So it is a very weak bearish reversal signal for the big cap miners.
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They were up over half a percent.
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The junior miners were up just slightly on
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the day, so there's not as much interest in the juniors at the moment.
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And of course, we'd love to see more interest in the juniors than the big caps.
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Silver reversed yesterday, closing lower on the day.
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There's the SLV closing lower on the day.
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After making a new high for this move, and
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then looking at silver miners again, we made a new high for this move.
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This is this move right here.
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But unfortunately we closed lower on the day, so that is a bit of a concern.
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Looking at the energy sector, starting off
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with crude oil, we pulled back in the channel yesterday.
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A close below 72.
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87 would give us a sell signal for the USO on Wednesday.
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Gasoline is back on a sell signal as of Tuesday's close.
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You can see we put in a lower high last Friday.
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And then looking at natural gas, we're still on a buy signal here.
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Moving up on Tuesday.
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Now, looking at the major energy etfs for
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the big caps, we're still on a buy signal here.
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No change. No change for the small cap energy stocks.
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We closed slightly higher on the day we've
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closed in the channel for the past couple of days.
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So a little concern there.
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Looking for a close on Wednesday below 51.
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43.
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Now, anytime you're looking at an ETF or an index, it's a group of stocks, so it is
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going to filter out the best performers and the worst performers.
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In this case, the only energy stock in the Dow 30 is Chevron.
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It's been on a sell signal for a few days now.
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Now, the best performing energy stock on
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the S&P 500 from Tuesday's trading action is Baker Hughes, which has barely moved
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since generating a buy signal over a week ago.
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On the other hand, the best performing big
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cap energy stock is Diamondback, which is up about 20% in the last month.
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Yesterday had an inside day and looking for a close on Wednesday below 176.
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51.
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Okay, folks, that is all for this morning's presentation.
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Looking for a positive open on Wednesday.
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From what we're seeing so far, we do have some economic numbers coming out today.
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We've got some job numbers.
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And then, of course, we have the energy numbers coming out later in the morning,
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which could change the direction of the market.
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Have a great day.
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Next time you'll hear my voice is on Thursday morning.
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And at that time, we'll take a closer look at the canadian stock market.

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