Today’s Market Outlook:
With above-average trading volume and trading range, the S&P 500® closed the week with a 52-point gain that pushed the index to finish with its 13th weekly gain in the past 14 weeks. The intermediate and long-term Market Sentiment lines closed near extreme highs as the momentum and near-term lines closed right at the upper-reversal zone boundary. Unlike the S&P and NASDAQ 100®, the Dow Jones Industrial Average finished high enough on the day to produce its third overbought cluster of the current bullish intermediate cycle. On the other hand, the Russell 2000® has a declining intermediate line into the chart’s lower half as its Market Sentiment line is slowly turning lower. The momentum and near-term line sit just below the intermediate line reflecting a less bullish Market Forecast than its large-cap peers.