Market Outlook™ – 01/04/19
Today, the S&P 500® closed 84 points higher on slightly below-average trading volume. The intermediate line continues to move higher but still sits below the chart’s midpoint. This means that near-term runs don’t last as long and the intermediate line will still most likely have a hiccup as it approaches the 50th percentile before making its way towards the upper reversal zone. The momentum line spiked to extreme levels for the second time in a week. This is a good sign that the strong selling has abated and stocks may be bottoming. Long-term Market Sentiment is slowing rising but also sits at very low levels, which reflects a weak long-term trend developing. As usual, all major indexes’ Market Forecast charts appear similar to one another.