Market Outlook™ – 04/20/20
Today’s Market Outlook:
Today, with light trading volume and range but large volume higher in implied volatility, the S&P 500® fell more than 51 points. The intermediate line is still running towards the upper-reversal zone. But, the momentum line dropped sharply to extremely low levels. Also, the near-term line is looking like it won’t make it above the 80th percentile. In fact, it appears to be setting up a potential bearish near-term divergence (lower highs on the near-term line that correspond to higher highs on the index itself). Long-term Market Sentiment is flat at low levels, reflecting the weak long-term trend. As usual, the Russell 2000® shows a more bearish pattern in the intermediate term but its short-term picture is slightly improved. Its momentum line avoided oversold territory and its near-term line has moved slightly into the upper-reversal zone.