Today’s Market Outlook:

On another day of light trading volume and below-average trading range, the S&P 500® gained nearly two points before the long, holiday weekend. The intermediate line turned higher and reflects a new weak bearish intermediate posture. The near-term line maintained its position in the upper-reversal zone – its third straight bullish higher following a prior bearish near-term low. The momentum line dropped but not to extreme lows. Long-term Market Sentiment still points lower, but is in a weak position. The Dow Jones Industrial Average and NASDAQ Composite show similar patterns on their respective charts. But, the Russell 2000® does not have a bullish posture yet. Its intermediate line remains in the lower-reversal zone as the small-cap index itself trades further down from its falling six-week moving average.