Market Outlook™ – 11/06/19 (no video, write-up only)
Today’s Market Outlook:
Today, the S&P 500® closed two points higher with minuscule trading volume and range. Not surprisingly, the intermediate posture remains strongly bullish with rising long-term Market Sentiment. The near-term line pulled back but remained in the chart’s upper half for a 20th straight session. The momentum line bounced up from extreme lows as stocks rallied off their mild intraday drop. The 3-day pullback this week still has not come close to approaching even the 23% Fibonacci retracement level of its prior near-term run. On the other hand, the Russell 2000® does show more of a true near-term pullback. The small-cap index has produced a bullish intermediate confirmation signal combined with the potential of a bullish near-term low. Keep in mind, the Russell also formed a bullish near-term low last week and the Dow and NASDAQ Composite formed their previous near-term lows previously. So, the S&P is the only one left to have the near-term line dip below the chart’s midpoint and have the index form any kind of low to bounce off of in the short term.