Market Outlook 03.1.2020
The S&P500 index was up 0.4% last week and closed at 322.41, we are at the 320-325 levels we have forecasted for the market all those weeks ago.
The daily RSI is back to normal levels from last weeks overbought.
Here are the momentum and overbought / oversold analysis for this week:
As usual, we are looking for sectors that are picking up on momentum while oversold.
Most sectors lost momentum this week, some are in negative momentum such as Homebuilders, Health care services(which we have spotted for short positions last week), and Pharmaceuticals, the Transportation sector lost most of its momentum this week and is usually a precursor to the market next move. Some sectors hit oversold levels they are Biotech, Materials, and Retail sectors. If we believe that the buyers will eventually regain control in the market ( which we do for the longer term), we search for buy-the-deep bargains and they are in the Biotech and materials sectors, specific stocks in these sectors may be found in our detailed alerts and stock picks service)
We have a number of specific stock picks in the above sectors described in our website,
You may find all of AlphaOverBeta trades in the Real Time Trading Updates of our website