Shrugging off Monday’s decline, stock markets climbed on Wednesday.
The Dow Jones Industrial Average (DJIA) increased +1%, while the S&P 500 gained + 1.2%. The Nasdaq Composite jumped +1.6%. Visa & Microsoft led DJIA's gains. Consumer Discretionary stocks were the leaders in the S&P 500's rise on Wednesday.
FAANGs also showed solid traction on Wednesday. Facebook, Amazon, Netflix and Alphabet shares all climbed more than 2%. Apple stock price inched up +1.9%.
Wednesday's rebound comes after the worst Christmas Eve plunge: the S&P 500 entered the bear territory on Monday. Monday’s sell-offs followed reports of Treasury Secretary Steven Mnuchin holding calls with major U.S. banks last weekend and issuing a statement saying, "The banks all confirmed ample liquidity is available for lending to consumer and business markets." While Mnuchin probably tried to assuage investor fears amidst rising volatility towards the year-end, his statement seemed to have triggered confusion or suspicion in markets leading to Monday’s steep declines.
But Wednesday’s market rise could potentially be signalling that the overall power of fundamentals of U.S. companies and the economy might not have worn off, yet.
On Tuesday, although President Donald Trump once again blamed the U.S. Federal Reserve of hiking interest rates too fast, he added that U.S. companies were "the greatest in the world" and presented a "tremendous" buying opportunity for investors.
The Aroon Indicator for IYY entered a downward trend on April 30, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 104 similar instances where the Aroon Indicator formed such a pattern. In of the 104 cases the stock moved lower. This puts the odds of a downward move at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on April 30, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on IYY as a result. In of 69 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IYY turned negative on April 01, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
IYY moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for IYY crossed bearishly below the 50-day moving average on April 19, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where IYY's RSI Indicator exited the oversold zone, of 29 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IYY advanced for three days, in of 367 cases, the price rose further within the following month. The odds of a continued upward trend are .
IYY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category LargeBlend