Today’s Market Outlook:

Today, the S&P 500® closed nearly five points lower fir its first three-day losing streak since September options expiration. The near-term line’s run above the chart’s midpoint ended at 30 trading sessions. The momentum line also dipped slightly. But, the shallow near-term dip kept the intermediate line easily in the upper-reversal zone with rising long-term Market Sentiment. Considering the near-term run lasted more than twice as long as the long-end of its typical range, there’s a good chance that either the near-term pullback is also longer than normal or the next few near-term rallies are significantly shorter. The near-term line for the Russell 2000® dropped below the chart’s midpoint after forming a bearish near-term high. But, the small-cap index also formed a bullish intermediate confirmation. This divergence suggests there could be some choppy near-term moves in the next week or two.