Today, the S&P 500® closed lower by almost 23 points. Despite the short-term pullback, the intermediate posture remains strongly bullish. The momentum line dropped into oversold territory but did not fall to extremes. In fact, the combination of an oversold momentum line and bullish intermediate posture constitutes a bullish intermediate confirmation signal. The near-term line closed below the chart’s midpoint and is setting up for a new potential bullish near-term low point (low between the 20th and 50th percentiles that correspond to a higher low on the chart itself. Market Sentiment (and the weekly intermediate line) is below the chart’s midpoint and signals the possibility for a new multi-month bullish run. Of course, the S&P will most likely have to break above the downward-sloping trendline resistance line to get the bullish move going.
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