Today’s Market Outlook:

Today, the S&P 500® rallied more than 26 points to recover some of yesterday’s losses. The intermediate line turned higher again and shows a weak bullish posture. The near-term line declined but stopped short of falling into the lower-reversal zone. Predictably, the momentum line has bounced off extreme lows but still hasn’t reached an extreme high that would suggest a new bullish intermediate run is ready to start. Market Sentiment continues to fall but is holding its position in the chart’s upper half. Today, the Russell 2000® formed a bullish harami pattern but its short-term sentiment is still more bearish than its large-cap counterparts. The near-term line finished below the 20th percentile along with the momentum line. In fact, the small-cap index cam close to producing an oversold cluster for the first time during this intermediate pullback. Also, its long-term Market Sentiment remains below the 50th percentile with the 50-day MA still sitting below the 200-day MA.