Today’s Market Outlook:

With an extreme amount of volume and trading range, the S&P 500 fell more than 87 points for its sixth straight decline – having lost more than 180 points during the streak. Not surprisingly, the S&P’s intermediate posture has turned bearish with a falling six-week moving average. This is a bearish combination despite rising long-term Market Sentiment. Because the S&P continues to close off its intraday lows during the losing streak, short-term sentiment has avoided falling to extreme lows. The near-term line is oversold and has been below the chart’s midpoint for four consecutive sessions. This pattern suggests that while stocks may be close to finding a short-term low, it may not achieve a new bullish intermediate posture for a while. With volatility rising, all the major indexes are strongly correlated again and showing similar Market Forecast patterns.

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