Market Outlook – 08/07/19
Today’s Market Outlook:
On another day of above-average trading volume and range, the S&P 500® finished more than two points higher despite a 66-point range. The intermediate posture is bearish but long-term Market Sentiment still points higher. Also, short-term sentiment bounced significantly higher with today’s intraday rally. The near-term line made its way back up to the chart’s upper half but the momentum line finished just below the chart’s midpoint. While both lines dropped into oversold territory during this decline, neither dropped to extreme levels that would suggest a surge in risk aversion. The S&P is holding support near Fibonacci retracement levels and looks likely to bounce back above higher retracement levels – similar to what the outperforming NASDAQ Composite has already done. The Russell 2000® continues to underperform in the short term. Its near-term line still has not made it above the 50th percentile.