Today, the S&P 500® closed lower by more than 20 points on above-average trading volume. The near-term line continued its decline and fell slightly into oversold territory. The momentum line jumped back above the 20th percentile with today’s late rally off intraday lows. Long-term Market Sentiment turned lower but still sits above the 80th percentile.  So, despite the short-term weakness, the intermediate posture and long-term Market Sentiment remain strongly bullish. The Dow Jones Industrial Average shows a similar pattern on its chart.  The NASDAQ Composite did not fall as much today. As a result, its near-term line stayed between the 20th and 50th percentiles and leaves open the possibility for a near-term bounce. Finally, the intermediate line for the Russell 2000® is still climbing towards the upper-reversal zone and short-term sentiment has the weakish bearish moves of all the major indexes.

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