The short-term downtrend continues, and this index has broken the 20-day. However, it doesn't look very alarming at the moment.

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The major indexes may not look like much to worry about, but the broader market has been weak according to these bullish percents.

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Junk bonds are holding up. Bears shouldn't celebrate until this starts to break down.

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However, the bears are happy about this chart. Small companies are selling off.

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Bears are happy with this chart too. This index moves with the market fairly well, so weakness here is often an indicator of weakness in the general market.

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The Leader List

Strong: Defense, Bonds, Utilities.  Weak: Energy, Pharmaceuticals, Retail.  Falling off the list today was South Korea although it still has a strong chart.

This group of stocks is very strong right now. I'm a buyer on dips, but this is too extended at the moment.

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Pharmaceuticals were hit very hard today.

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The contrarians who were buying and recommending Energy stocks had to scramble for cover.

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Outlook

John Murphy has pointed out that it has been a year since the market has experienced a 5% correction so it is overdue for a pullback. He also mentioned that we are entering the risky time of the year for market corrections.

The long-term outlook is positive.
The medium-term trend is up. Watching for signs of a peak.
The short-term trend is down as of July-28.