Today’s Market Outlook:

Not surprisingly, the S&P 500® continued this week’s low-volume, small-trading range pattern and closed more than one point lower. The intermediate line remains high in the upper-reversal zone with rising long-term Market Sentiment. The near-term line stayed high at overbought levels without the support of a bullish momentum line “thrust.” The short-term divergence is even worse for the outperforming Dow Jones Industrial Average. The momentum line for the NASDAQ 100® dropped sharply down to extreme lows. The Russell 2000® is also showing a significant divergence between the momentum and near-term lines.