Market Outlook™ – 10/14/20
Today’s Market Outlook:
Today, the S&P 500® closed lower for a second straight session – this time by more than 23 points. The intermediate line continues to move higher, albeit at a slowing pace. It has crossed above the still falling long-term Market Sentiment line. The momentum line stayed in oversold territory for a second straight day and the near-term line dropped sharply to close below the 50th percentile ending the recent near-term run. As a result, the divergence between bearish short-term sentiment and strengthening bullish intermediate posture suggests we may not be done with the prior intermediate pullback. All the major indexes show similar patterns on their respective Market Forecast studies.