Market Outlook™ – 03/20/20
Today’s Market Outlook:
Finishing up a week of extreme trading volume, the S&P 500® closed lower by more than 104 points for its third loss of the week – which was also the smallest loss of the three. The intermediate posture remains strongly bearish with falling Market Sentiment. Short-term sentiment also declined with the near-term line rolling back over without first crossing above the chart’s midpoint. In fact, the near-term line has been below the 50th percentile for 11 days – the longest streak since a 14-day run in early 2016. Incidentally, the near-term line for the Russell 2000® actually closed above the halfway mark. Its Market Sentiment is closer to dropping below the 20th percentile, which is rare. The last two times it spent more than a week in oversold territory was early 2016 and late 2008. Stocks started significant long-term rallies after reaching those lows.