Market Outlook™ – 03/11/19
Today, the S&P 500® closed more than 40 points higher on average trading volume. The broad rally brought the momentum and near-term lines from lower levels back to the chart’s upper half. The intermediate line still points slightly lower and reflects a weak bearish posture. Despite today’s bounce, the near-term line is still set up for a bearish near-term high (high between the 50th and 80th percentiles that correspond to a lower high on the index itself). Long-term Market Sentiment continues to rise, which suggests any weakness would not be trend changing. All the major indexes show a similar pattern on their respective Market Forecast studies: weak pullback with improved short-term sentiment – but not enough improvement in only one day to return back “full steam ahead” for market bulls.