Market Outlook™ – 09/21/20
Today’s Market Outlook:
With strong trading volume, the S&P 500® fell for a fourth straight session – this time by more than 38 points, or 1.16%, after rising 52 points off its intraday low late in the day. As a result, the S&P avoided an oversold cluster after flirting with one all day. The momentum and near-term lines rallied slightly. But, the intermediate and long-term Market Sentiment lines still point lower. The long-term line crossed below the 80th percentile today and reflects a weak long-term pullback. However, the intermediate has dropped to low levels and suggests while the intermediate pullback may last another few weeks, the extent of the drop may be mostly done. The NASDAQ 100® shows stronger short-term sentiment whereas the intermediate line for the Russell 2000® just barely crossed below the chart’s midpoint.