Market Outlook™ – 02/01/19
Today, the S&P 500® more than two points higher with slightly below-average trading volume. The intermediate posture remains strongly bullish with the intermediate line easily trading within the upper-reversal zone. The near-term line also breached overbought territory, which serves to confirm the new intermediate trend. Due to today’s small trading range as the S&P heads into a resistance area, the momentum line came down again but did not fall to levels that would warn on an intermediate trend change. Long-term Market Sentiment is slowly creeping higher but remains at low levels. This pattern opens up the possibility of more intermediate volatility until the long-term line crosses above the chart’s midpoint. All the major indexes’ Market Forecast charts appear similar to one another – with the exception of an overbought cluster that formed yesterday on the Russell 2000®.