Today’s Market Outlook:

With average trading range and volume, the S&P 500® rallied for the second time in three sessions. As a result, its intermediate line turned higher despite still staying in the lower-reversal zone. However, the long-term Market Sentiment line continued its descent at higher levels. The near-term line is close to entering into overbought territory, which would solidify this intermediate bounce but the momentum line – bouncing back up to the chart’s midpoint, suggests a lower probability of the near-term line getting to and staying at strong bullish levels. As usual, all the major indexes are showing similar patterns on their respective Market Forecast studies.