Today’s Market Outlook:
Today, the S&P 500® closed more than 30 points lower on average trading volume and range. The intermediate line was lower but remained above its long-term Market Sentiment line that is rising towards the upper-reversal zone. However, the momentum line and near-term line dropped to extreme lows for the third time since April options expiration. The Dow Jones Industrial Average came close to forming an oversold cluster as its intermediate line is close to falling below the 20th percentile. The intermediate line for the Russell 2000® turned slightly lower before breaking into the upper-reversal zone and its short-term sentiment is not nearly as weak as the Dow. The NASDAQ 100® also produced a bearish short-term sentiment but its intermediate and Market Sentiment lines are much more bullish than other major indexes.