Market Outlook™ – 03/06/19
Today, the S&P 500® closed lower for the sixth time in the past seven trading sessions – albeit with below-average trading range and average volume. In fact, the broad market has just filled in Monday’s lower shadow over the past couple of days. The intermediate posture remains strongly bullish but short-term sentiment is weakening. In fact, the near-term line is coming down from a bearish near-term high that is also a divergent high with the slightly higher high on the index itself. The Russell 2000® is a little different story. Its short-term sentiment is indicative of a potential trend change. Its intermediate posture has already turned weakly bearish with the small cap index breaking below Monday’s low and other similar lows over the past few weeks. This may be a sign of what’s to come for the broad market index.