Market Outlook™ – 05/22/20
Today’s Market Outlook:
With extremely light, pre-holiday trading volume, the S&P 500® closed nearly seven points higher to finish out a strong week. The intermediate posture remains strongly bullish with rising long-term Market Sentiment. But, the slow sideways action this week that came after Monday’s large opening gap brought the near-term line in the chart’s lower half and kept the momentum line at low levels. The Russell 2000® shows a similar pattern on its Market Forecast. But, it had less of an opening gap to the week and more of a stronger move higher during the week. As a result, its near-term line stayed in overbought territory even with a lagging momentum line.