Market Outlook™ – 04/03/19
With below-average trading range and volume, the S&P 500® closed more than six points higher for its fifth straight gain. The intermediate line re-entered the upper-reversal zone and shows a renewed strong bullish posture. Long-term Market Sentiment has also breached the upper-reversal zone. Both short-term sentiment lines fell with the smaller trading range and intraday drop from today’s high. But, the near-term line remains in the chart’s upper half and the momentum line did not fall to extreme lows. Neither short-term outcome suggests imminent weakness. The Russell 2000® looks similar in its short-term sentiment but its persistent under-performance is reflected in its intermediate line crossing above the chart’s midpoint today where the other major indexes’ intermediate lines are all above the 80th percentile. The outperforming NASDAQ Composite has the strongest long-term, intermediate and short-term posture of the four main U.S. equity indexes.