The S&P 500 receives a five-point downgrade to +45 (Neutral), as continued weakness in technology and deterioration in other areas outweigh the strength still present beneath the surface. Last week’s support violation required buyers to rebuild confidence. Instead, the post-election rally stalled at a lower resistance level before Thursday’s aggressive selling extended the damage. Friday’s recovery offers an initial response, but the market needs more development before that response becomes a reliable reversal.

The S&P 500 receives a five-point downgrade to +40, Slightly Bullish, as the bearish patterns we tracked last week gave way to confirmed breakdowns. Rotation into cyclical and defensive sectors continues to support the broader outlook, but the accelerating decline in technology is putting greater pressure on the major indexes. That combination warrants a reduction in conviction while preserving the slightly bullish ranking supported by opportunities developing elsewhere in the market.

The S&P 500 remains +35 (Slightly Bullish). The ES and SPY show short term head and shoulders formations, support pressure, and increasing volume, all reasons for caution. But RSP is recovering, reclaiming key moving averages, and showing improving breadth as money rotates away from the largest growth stocks into other parts of the market. That divergence is why the ranking holds.

We maintain our +35, Slightly Bullish market ranking as improving participation offsets deterioration in Technology. Last week, the S&P 500 reached a new high while early Nasdaq underperformance accompanied improving strength elsewhere. This week, that divergence widened as selling accelerated in Technology while developing recoveries in RSP and the Dow progressed. That combination preserves the broader assessment while calling for a more cautious approach to the immediate trading environment.

The S&P 500 established a new all-time high this week, but the more important development came as its recent leaders started pulling back. Buyers stepped into several areas that had spent weeks correcting, allowing RSP to strengthen through Thursday’s technology weakness. That gives the market a better foundation heading into earnings season, with broader participation beginning to support the bullish structure.

The S&P 500 is approaching another resistance test, but the broader market has yet to finish its correction. Technology strengthened this week while breadth weakened, leaving the index in a choppy consolidation beneath 7,850. The late-week recovery improved the hourly trend and preserved rising support on the daily chart, although the pattern is less orderly than last week’s bull flag. With the longer-term bullish structure intact and the short-term range unresolved, we maintain our +35 (Slightly Bullish) ranking.