Market Outlook – 08/09/19
Today’s Market Outlook:
With slightly above-average trading volume and below-average range, the S&P 500® fell more than 19 points to give back some of its gains from yesterday. Not surprisingly, the momentum line dropped back down from an extreme high but the near-term line stayed in the upper-reversal zone. This short-term sentiment pattern is a good sign for the beginning of a new intermediate run. The intermediate posture is bullish again but is still below the chart’s midpoint, which reflects a weak posture. Long-term Market Sentiment still points higher, which helps support the idea that this two-week weakness could only be just an intermediate pullback. The Dow Jones Industrial Average shows a similar pattern on its Market Forecast. But, the Russell 2000® still underperforms. Its short-term sentiment has not been nearly as bullish the past few days.