Market Outlook™ – 05/29/20
Today’s Market Outlook:
With above-average trading volume, the S&P 500® closed the month of May with a 15-point gain. The intermediate posture remains strongly bullish and long-term Market Sentiment has crossed above the chart’s midpoint. The near-term line continued lower and may be forming a bearish near-term divergence (lower near-term highs that correspond to higher highs on the index itself). The momentum line stayed in the lower half of the chart with a second day this week with a long lower shadow. All the major indexes appear similar to one another. The Russell 2000® shows a more bearish near-term sentiment after two straight down days underperforming its large-cap counterparts.