Today, the S&P 500® fell for the third time in the past four trading sessions. In all four sessions, the broad market formed lower intraday highs and lows – but, neither one of the days produced a close at the day’s lowest point. Because of the weakness, short-term sentiment remain depressed in the lower half of the chart. However, the momentum line is not falling to extreme lows and the near-term line continues to set up the possibility for a bullish near-term low (low between the 20th and 50th percentiles that corresponds to a higher low on the index). The intermediate line is also falling but the muted short-term weakness has kept the posture strongly bullish. Also, long-term Market Sentiment remains strongly bullish. The Dow Jones Industrial Average avoided most of the large-cap tech stock selling and its outperformance reflects in a stronger short-term sentiment. The NASDAQ Composite has been out-gaining its large-cap peers over the past week or so and, as a result, its near-term line fell below the chart’s midpoint for the first time today in 13 trading sessions. The Russell 2000® bounced sharply off its intraday lows for a second straight day. Its near-term line remains in the chart’s upper half for a 13th consecutive session.

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