Today’s Market Outlook:

With extremely light trading volume and trading range, the S&P 500® fell more than 20 points to continue its up and down pattern over the past two weeks. Despite the sideways range, the intermediate posture and long-term Market Sentiment remain strongly bullish. The near-term line continued its ascent towards overbought territory from oversold levels two days ago. However, the momentum line moved in the opposite direction and dropped out of bullish territory (below the 60th percentile). The NASDAQ 100® closed with an overbought cluster with all four lines in the upper-reversal zone. In fact, all four lines finished above the 85th percentile. On the other hand, the intermediate line for the Russell 2000® turned lower again towards bearish territory with both short-term lines moving lower again.