Market Outlook™ – 05/15/19
The S&P 500® continued its short-term rally off yesterday’s opening lows with today’s 16-point gain. The near-term line avoided oversold territory and bounced back into the chart’s upper half. The momentum line also avoided extreme lows during its recent decline. While, these short-term patterns do not suggest we’re moving to new highs any time soon. It does suggest that the current selling will most likely not be as deep as last October or December. Long-term Market Sentiment is down showing a weak bearish long-term trend. And, the intermediate line is falling below the 50th percentile but not yet down into oversold territory. This combination is typical of intermediate pullbacks that can set new lows that evolve into new intermediate runs to new highs. Because of the length of the previous intermediate rally, this bottoming process may still take another week or two.