Market Outlook™ – 02/10/20
Today’s Market Outlook:
Today, the S&P 500® bounced from Friday’s selling with a new 52-week closing high. The intermediate line re-entered the upper-reversal zone with the long-term Market Sentiment line. This pattern reflects a persistent strong trend. The momentum line jumped back into overbought territory too and kept the near-term line above the 50th percentile. On the other hand, the Russell 2000® does not have the same bullish Market Forecast. Its intermediate line moved higher but just crossed the chart’s midpoint. And, its near-term line is still in the lower half of the chart with its momentum line also weakly bullish. This divergence suggests risk appetite wasn’t as strong as it seemed on the surface.