Safeguard prevents the user and its party from being affected by any status condition for five turns except those caused by special abilities, held items or self inflicted statuses. It also does not block the effect of Yawn if Yawn has already been used, and it does not cure an already existing status.
So yes, but Dragonite was confused because Safeguard does not protect you from self inflicted statuses. Outrage inflicts Confusion on the user, therefore it falls under this category.
http://bulbapedia.bulbagarden.net/wiki/Safeguard