Today’s Market Outlook:
With very weak volume and below-average trading range, the S&P 500® closed more than 26 points higher for its third gain in the past four trading sessions having completely made up the losses of the first 5 days of January. The intermediate line is moving higher again and is close to regaining the upper-reversal zone as long-term Market Sentiment continues its slow ascent above the 80th percentile. The momentum line dropped again due to the smaller range but the near-term line stayed in overbought territory to help confirm the continuing bullish trend. On the other hand, the Russell 2000® is showing a less bullish Market Forecast. Its intermediate line is below Market Sentiment at the low end of bullish territory with the near-term line forming a bearish peak as it follows the momentum line into the chart’s lower half.