Market Outlook™ – 04/06/20
Today’s Market Outlook:
With below-average trading volume but significantly above-average range, the S&P 500® closed 175 points higher and more than reversed the losses from the past four trading sessions. The intermediate line turned back up and showed a renewed weak bullish intermediate posture. The momentum and near-term lines also turned higher. The momentum line hit overbought levels again as the near-term line failed to reach the 80th percentile. Long-term Market Sentiment still points lower but is slowing its descent. The Russell 2000® did not breach last week’s highs and still shows a strong bearish intermediate posture. Also, Market Sentiment is still in the lower-reversal zone. The momentum line hit an extreme high for the second time in the past two weeks. The last move preceded a strong bullish near-term move and may do it again.