Market Outlook™ – 01/09/19
Today, the S&P 500® closed higher by more than 10 points on below-average trading volume. The intermediate line continues to rise and reflects a strengthening bullish posture but its position in the lower half of the chart implies weakness still. Considering the intermediate line is coming from strongly oversold levels, there’s a good chance it sees a hiccup around the chart’s midpoint before making its way towards the upper-reversal zone. Long-term Market Sentiment is also rising but at lower levels. As with the intermediate line, it implies weakness but also shows the potential for bigger returns if multiple intermediate rallies develop. The near-term line remains above the 80th percentile, but near-term runs are shorter than normal when the intermediate line is rising in the chart’s lower half. As usual, all the Market Forecast charts appear similar to one another.