September 27, 2020
Weekly Market Outlook
By Keith Schneider
US equity markets mostly retreated, with the NASDAQ 100 bucking the sell off and closing +1.76% on the week. Meanwhile, Small Caps fell with Grandpa Russell (IWM) closing -4.48%, erasing much of the improvement over key US equity benchmarks. Globally stocks retreated with no exceptions.
The leadership shifts we saw over the past few weeks reversed with Growth closing strong on Friday.
However, one exception, was precious metals which broke down hard and remained weak although the longer-term trend is still intact.
This week’s highlights are:
On a short-term basis, equities were oversold as the number of stocks above their 10-day moving average dropped to less than 10% on Thursday. Our Real Motion indicators were also hitting oversold levels and this combination often leads to a decent bounce which started on Friday. We still need some added confirmation of strength to move all the key indexes above their 50 DMA’s and resume bull phases to change our outlook.
Best wishes for your trading!
CEO - Marketgauge.com