Market Outlook™ – 04/15/19
With extreme low trading volume and range, the S&P 500® closed almost two points lower to break its 3-day win streak. This was only the second down day for the S&P since March 27. Of course, the intermediate posture and long-term Market Sentiment remain strongly bullish. Also, the near-term line stayed above the 80th percentile. But, the short-term sentiment line still has the potential for a bearish near-term divergence. Not surprisingly, the momentum line fell but not to extreme lows. Like the S&P, the Dow Jones Industrial Average and NASDAQ Composite is also close to a quadruple overbought cluster – only missing the momentum line, which nearly fell into oversold territory. The Russell 2000® is forming a bullish intermediate confirmation with its oversold momentum line. The near-term line remains above the 50th percentile, which weakens the short-term signal – especially since the near-term line is also falling from a bearish divergence high.