Today’s Market Outlook:

With below-average trading volume and trading range, the S&P 500® finished almost 20 points lower for its second straight loss. Despite the strong bearish short-term sentiment, the intermediate posture remains strongly bullish with rising long-term Market Sentiment. The momentum line fell to extreme lows and the near-term line dipped into the oversold territory. This is a small red flag that the posture may at least turn weakly bearish into the next week or two. All the major indexes show similar patterns with less bearish short-term sentiment than the S&P. Even though the Russell 2000® broke out of it sideways channel to the downside, its short-term sentiment was actually less bearish than the S&P – which is a sign to not take the pullback too seriously yet.

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