A bad week for stocks, but we have seen worse

Last week was not a good week for the stock market, particularly Friday with a 1.61% pullback in the S&P500. The U.S. Markets, particularly the S&P 500 are showing an 8 week consolidation pattern bouncing between 1,369 and 1,423.

A break down through the 1,350 mark would be seen as a short term bearish pattern.  However during this period we have not seen any signs of a change of sentiment in the participants with volume remaining right on the 10 day
moving average.

Although last week’s Friday close looked quite bad with a 1.6% pullback, for the overall week the market was down 2.5%. This is way under the pullback which I would classify as a market shock.

The outlook for the market is:

• Short Term – Consolidation
• Medium Term – Consolidation
• Long Term – Uptrend