DJIA +567.02 Pts After Testing Monday’s Lows
$DIA, $SPY, $QQQ, $VXX
The major US indexes surged Tuesday afternoon after testing to Monday’s lows. The sharp swings come 1 day after the steepest point fall on Wall Street in 6.5 years.
Some are saying that investors are fearful that signs of rising inflation and higher interest rates could bring an end to this Bull Market that has driven it to continuing record highs since is bottomed on 9 March 2009 after the Great Recession.
The decliner off of the 26 January highs erased the gains the DJIA and S&P 500 made since the beginning of the year on Monday, but both are higher over the past 12 months. Today the indexes are back in the Green
Note: The DJIA is up about 25% over that frame, and the S&P 500 + 19%.
Trading has been volatile.
The CBOE Volatility Index (VIX) 30.14, -7.18, aka the “fear gauge,” dropped 19.2% after surging more than 100% Monday.
It this Bull Run it has been long time since the last market correction, which happened about 2 years ago.
Despite the swings, Tuesday’s action looks similar to the technical patterns that have shaped this market since 8 November 2016: Buy the Dips.
Nine of the 11 sectors finished in positive territory, with cyclical groups setting the pace. This is a possible sign that investors are shifting their focus back to the fundamentals, including an upbeat economic growth outlook that is expected to translate into impressive earnings growth ahead.
Tuesday, the major US stock market indexes finished at: DJIA +567.02 at 24912.77, NAS Comp +148.36 at 7115.88, S&P 500 +46.20 at 2695.14
Volume, trade on the NYSE came in at: 1.45-B/shares exchanged
Overall, HeffX-LTN technical outlook for the major US stock indexes is Neutral to Bullish in here, the trend is North.