Market Outlook™ – 11/05/18
With extremely low volume and below-average trading range, the S&P 500® finished higher by 16 points ahead of tomorrow’s U.S. midterm elections. The intermediate line continues to move higher but has not crossed above the chart’s midpoint yet. The momentum line jumped on today’s gain but the near-term line still points lower. The short-term sentiment line still has not crossed below the chart’s midpoint yet. Long-term Market Sentiment fell below the 50th percentile. This means that if and when a new bullish intermediate run starts and long-term sentiment turns higher, there’s a good chance it makes multiple intermediate runs again to new highs. As usual, the major indexes’ respective Market Forecast charts appear similar to one another – except for their near-term lines. The tech-heavy NASDAQ Composite’s near-term line fell below the chart’s midpoint whereas the near-term line for the small-cap Russell 2000® just barely dropped out of the upper-reversal zone.