Market Outlook™ – 10/11/19
Today’s Market Outlook:
The S&P 500® finished off a positive week with a 32-point gain on above-average trading volume. The intermediate posture is still weakly bullish as the intermediate line still has not crossed above the chart’s midpoint yet. Also, the near-term line finished outside the upper-reversal zone because of the late-day selling. This may portend some early weakness next week before a new extended near-term rally begins a new intermediate run. The momentum line failed to get to extreme highs as well, which is another indicator of a new intermediate rally beginning. Long-term Market Sentiment has turned slightly higher and looks likely to avoid falling into the lower-reversal zone. This is not the case for the Russell 2000® which still shows a much weaker pattern on its Market Forecast: weak bullish posture that barely avoided the lower-reversal zone and short-term sentiment that closed just above the chart’s midpoint despite the Russell’s outperformance today compared to its large-cap counterparts.