Market Outlook™ – 04/03/20
Today’s Market Outlook:
With its lowest volume and smallest trading range of the week, the S&P 500® closed down by more than 38 points for its third decline of the week and fourth in the past six trading sessions. The intermediate posture remains strongly bearish with the S&P still easily below its falling six-week moving average. The near-term line is bouncing above the lower-reversal zone but remains in the chart’s lower half. The momentum line turned back down but avoided extreme lows. Long-term Market Sentiment continues to drop and has breached the 30th percentile and is inching closer to oversold levels. The underperforming Russell 2000® nearly pulled off a rare oversold cluster with all four lines below the 20th percentile – only a slight bump higher in the near-term line kept the small-cap index from producing the oversold signal. The last time the Russell showed this signal was December 24, 2018 and, before that, October 3, 2011. It only occurred twice in 2008-2009 on back-to-back days in November.