Market Outlook – 04/27/18 – David Settle
Today, the S&P 500® closed almost three points higher on low trading volume. The intermediate line turned slightly higher and reflects a weak bullish posture again. Given the line’s volatility lately and its position near the chart’s midpoint, the posture appears more neutral. The expectation is for the broad market to continue to coil until its breaks out. The near-term line rose and entered overbought territory. This pattern is a good sign for the new posture but its unlikely we’ll get a new near-term high on this current run with overhead resistance looming. A bottoming Market Sentiment line suggests a long-term breakout is more likely to the upside than to the downside where there’s much stronger support levels formed. The Russell 2000® shows a better intermediate posture but weaker near-term bounce – another indication this current near-term run may run out of gas before hitting new near-term highs.
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