Market Outlook™ – 03/15/19
Today, the S&P 500® finished a strong week higher with average trading volume. The intermediate posture returned to a strong bullish state. The near-term line dropped further but remains in the chart’s upper half. The momentum line bounced out of oversold territory after yesterday’s bullish intermediate confirmation signal. Long-term Market Sentiment continues to rise and sits a few percentiles away from crossing above the 80th percentile. The Dow Jones Industrial Average and Russell 2000 have both been lagging behind – for different reasons. The Dow just started a new bullish posture again but its intermediate is still underneath the upper-reversal zone. Also, the intermediate line for the Russell 2000 just crossed above the 60th percentile – similar levels to the blue-chip index. Short-term sentiment for the small-cap index fell with the Russell forming a lower near-term high this week. Not exactly the same “risk on” picture in the S&P and NASDAQ.