Market Outlook™ – 04/08/19
Today, with very light trading volume and small trading range, the S&P 500® rose for an eighth consecutive session. Both long-term Market Sentiment and intermediate posture remain strongly bullish. The near-term line jumped back into the upper-reversal zone and negated the potential bearish near-term divergence by reaching a new higher high. The momentum line fell due to today’s early low point. But, the short-term line did not fall to extreme lows that would suggest a possible trend change. The bearish near-term divergence is playing out on the Dow Jones Industrial Average. But, again, its momentum line avoided falling into oversold territory. The Russell 2000® shows the weakest bullish posture. But, its short-term sentiment remains very strong and has held yesterday’s breakout above the highs from two weeks ago.