Market Outlook – 05/02/18 – David Settle
Today, the S&P 500® fell by more than 19 points on below-average trading volume. The intermediate line continued higher but its position near the chart’s midpoint and the relatively tight range between its most recent high and low reflect a neutral posture. The near-term line bounced higher and avoided the reversal zone, so far. Another sign of the S&P’s current neutral coiling action is the near-term lows above the 20th percentile and the near-term peaks below the 80th percentile. Market Sentiment remains below the chart’s midpoint, which suggests stocks are still building a possible long-term low point here. Unlike other large-cap indexes, the Russell 2000® is showing a more bullish posture and appears to be bouncing off a bullish near-term divergence. While the small-cap index closed above yesterday’s high, it was unable to close above the divergence high and solidify the current posture.
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