Today’s Market Outlook:

Today, the S&P 500® rebounded and gained back roughly half of Friday’s losses with a 31-point gain on half the volume on Friday. The intermediate line still points lower and shows a bearish posture with the falling six-week moving average. Long-term Market Sentiment moves lower too but reflects a weak trend. On the other hand, the near-term line avoided the lower-reversal zone again for a second straight day despite another decline. This pattern suggests the bearish intermediate posture is not as strong. The momentum line bounced but did not break above the chart’s midpoint. This means today’s bounce is weak compared to the previous drop and bulls aren’t strong enough yet to reverse the intermediate trend. But, bears aren’t strong enough to expect a support breakout either.