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
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