Market Outlook – 04/06/18 – David Settle
The intermediate line for the S&P 500 turned slightly lower after today’s sharp decline which turned the intermediate posture bearish again. The momentum line fell but not to extreme levels. Also, the near-term line fell but maintained its position in the chart’s upper half for at least another session. Long-term Market Sentiment still points lower, which suggests stocks’ path of least resistance is still to the downside. The broad market is led lower by a few large-cap names but its equal-weighted version continues to outperform. In the past, this has signaled a low point for stocks. If stocks do break through significant support near current levels, I discuss where stocks will find its next floor. Volume picked up with today’s selling but volatility did not spike higher, which is another reason to suspect the selling may not last into next week.
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