Market Outlook™ – 05/13/19
Today, the S&P 500® dropped nearly 70 points in an extreme trading range (including overnight trading) and strong volume. The intermediate line fell below the chart’s midpoint for the first time since crossing above it in mid-January. Long-term Market Sentiment has also crossed below the 80th percentile and reflects a new weak bearish trend. The momentum line fell but avoided extreme lows again. Also, the near-term line dropped after forming a second consecutive bearish near-term high (high between the 50th and 80th percentiles that correspond to lower highs on the index itself). All the major indexes are showing bearish intermediate trends with falling short-term sentiment but not too extreme to suggest the bearish posture will reach the lower-reversal zone yet.