Market Outlook

Last week's price action did nothing to change the overall technical picture.

The S&P 500 remains the laggard and closed the week basically where it began: under its 50dma and the 2100 level. On the other hand, the Russell continued to lead and is flagging within 1% of its all-time highs.

However, the week was a disappointment to the bulls still waiting for that broader market breakout. Having gone for a while without it we need to be mindful of the fact that the longer the bulls are unable to pull it off, the higher the odds of a more substantive push lower.

Revisiting the "wedge-triangle" analysis from a few weeks back, it seems that the market remains in a somewhat precarious state.

Looking at the bearish wedge view, the recent price action in the S&P 500 continues to look like a long bearish consolidation. The failure of the 2070 support could lead to a measured move toward 2000.

Even the ascending triangle view is starting to look a lot less bullish...

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Enjoy your Sunday.