Market Outlook

For the umpteenth time this year, the bears tried to flex their muscles and break the aging bull market and ended the week disappointed.

In the early part of the week, the S&P 500 again broke below the 2090 support and on Wednesday reached as low as 2070. Then came the all-too-familiar reversal: the S&P bounced on Thursday and then roared back on Friday to reclaim the 2100 level and end the week less than +0.5% from its all-time highs.

To be fair to the bears, they can still make a claim the market technically remains in a correction. If we look at the familiar eight-month rising wedge, you can see that the S&P is still under the lower trendline, which means bears are still in control.

Bolstering the bearish case is the fact that the Russell and small caps continue to lag badly and IWM remains under its 20 and 50 dmas.

However, there is plenty out there that should make the bears uneasy and points to a likely continuation higher in the short-term.

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Enjoy your Sunday, happy Mother's Day!