Market Outlook™ – 10/28/20
Today’s Market Outlook:
With very strong volume and large trading range, the S&P 500® fell more than 119 points. The intermediate line continued lower and crossed below the falling long-term Market Sentiment line. Both lines remain in the chart’s upper half and reflects a weak bearish posture. Short-term sentiment looks more bearish than it has since the intermediate decline started in early December. The momentum line dropped to extreme lows again and has been unable to follow that up with a strong bullish result. The near-term line hits its lowest level in oversold territory since the June drop. All the major indexes have similar Market Forecast patterns. The Dow Jones Industrial Average is the first to have its intermediate line drop below the 50th percentile whereas the Russell 2000 had its first day with a weak bearish intermediate posture and falling six-week moving average. Also, the small-cap index has the worst short-term sentiment among the major indexes.