Market Outlook™ – 07/31/20
Today’s Market Outlook:
Today, the S&P 500® finished nearly 25 points higher but more than 51 points off its intraday low and formed its first overbought cluster since last December. The intermediate posture remains strongly bullish with strong short-term sentiment. Long-term Market Sentiment actually points slightly lower and reflects as weak of a long-term bearish posture as you can possibly have. The intermediate line for the Dow Jones Industrial Average dropped back below its Market Sentiment line. But, it still only shows a weak bearish posture as the Dow trades above its rising six-week moving average. The NASDAQ 100® came close to forming its own overbought cluster. The Russell 2000® shows a strong bullish posture but its near-term line is having a hard time staying at bullish levels, which has reflected the small-cap index’s weak bullish moves lately.