Market Outlook – 04/04/18 – David Settle
The intermediate posture for the S&P 500® turned bullish with today’s strong bullish engulfing candlestick. Of course, the day did not start off as well with an opening gap to the downside; this pattern kept the momentum from spiking to an extreme and the near-term line from hitting the upper-reversal zone. These two steps are important short-term steps to an established intermediate run. The run doesn’t officially begin until the intermediate line gets above the chart’s midpoint. Long-term Market Sentiment fell below the 50th percentile for the first time since November 2016 – the 8th time in the past 8+ years. Each time Market Sentiment formed a higher low on the S&P 500 itself, it led to new long-term highs. The NASDAQ Composite is the only major index to not show a bullish posture change yet due to its deeper pullback relative to the other indexes.
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