Market Outlook™ – 02/25/20
Today’s Market Outlook:
The S&P 500® fell another 97 points on extreme levels of volume and trading range again for a two-day decline of 209 points. The intermediate posture is increasingly bearish with the intermediate line close to crossing below the chart’s midpoint and long-term Market Sentiment close to falling out of the upper-reversal zone. Short-term sentiment is extremely oversold and suggests we can have a month or two of weakness – with fluctuating periods of sharp, quick short-term bounces with retests of current lows. The Dow Jones Industrial Average has fallen more than 62% of its prior bullish intermediate run already and, along with the Russell 2000®, already shows a strong bearish posture with weak bearish long-term sentiment. The Market Forecast study for the NASDAQ Composite is very similar to the S&P’s chart.