Invest Daily Pro
  • Economy
  • Investing
No Result
View All Result
  • Economy
  • Investing
No Result
View All Result
Invest Daily Pro
No Result
View All Result
Home Stocks

Mastering Stock Market Turbulence: Essential Insights for Investors

by Invest Daily Pro
April 10, 2025
in Stocks
0
Mastering Stock Market Turbulence: Essential Insights for Investors
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Tariff turmoil continues sending the stock market into a turbulent spin. Tariffs went into effect at midnight, which sent equities and bond prices lower. Then before 1:30 PM ET Wednesday, President Trump announced that China would be slapped with 125% tariffs and the reciprocal tariffs are on pause for 90 days.

This was a huge turning point for the market. Without skipping a heartbeat, buyers rushed in and accumulated equities, especially large-cap growth stocks. The S&P 500 closed higher by 9.52%, the Nasdaq was up 12.16%, and the Dow was up 7.87%. Small and mid-cap stocks also saw substantial gains. 

Wednesday’s turnaround may have been the biggest one-day point gains in history for some of the broader stock market indexes but let’s look at the charts to see a clearer picture of what’s going on with this whacky stock market. 

A View of the Broader Stock Market

From a long-term perspective, the uptrend in the S&P 500, Nasdaq, and Dow are still intact. The weekly charts of the three indexes are also encouraging. But the daily charts are not yet screaming buy signals. Let’s start with the daily chart of the Nasdaq.

FIGURE 1. DAILY CHART OF NASDAQ COMPOSITE. The index has hit the resistance of its 21-day exponential moving average and breadth indicators in the lower panels show some breadth indicators are improving but not enough to suggest a bottom in the index.Chart source: StockCharts.com. For educational purposes. 

The Nasdaq touched its 21-day exponential moving average (EMA), which could be the first resistance level for it to overcome. The three breadth indicators in the lower panels—Nasdaq Composite Bullish Percent Index (BPI), NASDAQ Advance-Decline Line, and percentage of stocks trading above the 200-day moving average of the Nasdaq—are improving slightly but they are not showing signs of bullishness. 

Wednesday’s best-performing S&P sector was Technology followed by Consumer Discretionary. Rotation into these sectors implies risk-on investing. However, since the Nasdaq’s daily trend is still down, don’t let your emotions guide your investment decisions. Look for confirming signals before entering any long positions. 

The S&P 500 daily chart is not much different (see below). The index came close to touching its 21-day EMA. If the index opens higher on Thursday, watch this EMA closely. A break above it would be a positive move but there still needs to be a series of higher highs and higher lows for an uptrend to be established. 

FIGURE 2. DAILY CHART OF THE S&P 500 INDEX. It’s worth watching the 21-day EMA in the S&P 500. If the index breaks through that level and starts showing signs of an uptrend and the market breadth indicators suggest increasing bullish participation, it may be time to think about adding positions. But, we’re far from that point. Chart source: StockCharts.com. For educational purposes.

The market breadth indicators in the lower panels are showing some signs of improvement. The percentage of stocks trading above the 200-day moving average of the S&P 500 is at 31.80, which is encouraging but you want to see it at or above 50%. Like the Nasdaq, the S&P 500 is showing no clear signs of an uptrend, so tread carefully.

Replace the symbol in either of the above charts with $INDU and you’ll see that the Dow is in a similar position as the Nasdaq and S&P 500. 

Bonds to the Rescue?

Although equities showed a lot of movement on Wednesday, don’t lose sight of the shenanigans in the bond world. The 10-year U.S. Treasury yields rose as high as 4.47% but pulled back and closed at 4.40%, which is still relatively high. The iShares 20+ Year Treasury Bond ETF (TLT) closed 3.24% higher. 

This price action in TLT is worth watching closely. Bond prices fall when yields rise and Wednesday started out with stock and bond prices falling. This is unusual since bond prices usually rise when stocks fall. There was a lot of bond selling taking place the previous night which may have been due to the unwind of the basis trade by hedge funds. Since we’re technical analysts, instead of getting into the nitty gritty details of this hedge fund strategy, let’s analyze the five-year weekly chart of TLT.

FIGURE 3. FIVE-YEAR WEEKLY CHART OF TLT. This bond ETF has been in a downward trend for the last five years. Has its time come or will it linger in the depths of the abyss for longer? Chart source: StockCharts.com. For educational purposes.

Bond prices have been trending lower over the past five years and showing no signs of a reversal. Although TLT came off its lows, it still has a long way to go before showing modest signs of an uptrend. 

The Bottom Line 

Wednesday’s big turnaround didn’t change the big picture. We’re not out of the woods yet. And there’s more excitement to look forward to — the March CPI on Thursday morning and earnings season kicks off on Friday. A note about earnings — we probably won’t see much of an impact this quarter but keep your ear open for any chatter on how tariffs will affect profitability. 


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

ShareTweetPin

Related Posts

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now
Stocks

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

June 2, 2025
Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now
Stocks

Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

June 1, 2025
Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove
Stocks

Week Ahead: NIFTY Stays In A Defined Range; Moving Past This Level Crucial For Resumption Of Upmove

June 1, 2025
Run Your Stock Portfolio Like a Pro Sports Team
Stocks

Run Your Stock Portfolio Like a Pro Sports Team

May 31, 2025
Leadership Rotation Could Confirm Corrective Phase
Stocks

Leadership Rotation Could Confirm Corrective Phase

May 31, 2025
Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?
Stocks

Analyzing SIL, USO, and NVDA: Could These Bullish Patterns Trigger?

May 30, 2025
Next Post
Key Levels for the S&P 500: Has It Bottomed?

Key Levels for the S&P 500: Has It Bottomed?

Recommended

DP Trading Room: Black Swan Monday!

DP Trading Room: Black Swan Monday!

January 28, 2025
Legal Essentials for Entrepreneurs Pivoting Towards Tech Solutions

Legal Essentials for Entrepreneurs Pivoting Towards Tech Solutions

October 20, 2024
Bluewater Home Interiors Announces Official Collaboration with Samsung Appliances

Bluewater Home Interiors Announces Official Collaboration with Samsung Appliances

October 7, 2024
Why Your Business Needs An Exhibition Stand: A Game-Changer for Growth

Why Your Business Needs An Exhibition Stand: A Game-Changer for Growth

November 13, 2024
Hot money net inflows rise to $1B in September

Hot money net inflows rise to $1B in September

October 31, 2024
Why Your Business Should Invest in Inbound and Outbound Call Centers

Why Your Business Should Invest in Inbound and Outbound Call Centers

August 20, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 InvestDailyPro. All Rights Reserved.

    Disclaimer: InvestDailyPro.com, its managers, its employees, and assigns (collectively InvestDailyPro ) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    No Result
    View All Result
    • About us
    • Contact us
    • Home
    • Privacy Policy
    • Suspicious engagement
    • Terms & Conditions
    • Terms & Conditions
    • Thank you

    Copyright © 2024 investdailypro.com | All Rights Reserved