Market Outlook™ – 01/07/19
Today, the S&P 500® closed higher by nearly 18 points – its sixth gain in the past eight trading sessions. The intermediate trend is weakly bullish but short-term sentiment is strong, which suggests there’s a good chance the heavy selling is over for the time being. Long-term Market Sentiment is starting to slowly move higher too. This is a good sign for long-term potential but that doesn’t mean there won’t be a typical hiccup as the intermediate line comes from oversold levels towards the chart’s midpoint. As usual when stocks are strongly oversold, the Market Forecast charts all appear similar to one another. Short-term sentiment is stronger for the NASDAQ Composite and Russell 2000®. But, the small-cap index is coming off a more extreme low, which usually means the short-term oversold technical bounces tend to be stronger. All the indexes are heading towards short-term resistance at their respective falling six-week moving averages.