Data MixedOpinion
All of the indexes closed higher Wednesday with positive internals on the NYSE and NASDAQ as volumes declined from the prior session. The bulk of the losses from the prior session were recovered on most of the charts. New closing highs were achieved on several of the large cap indexes. The data however has turned a bit more mixed with some overbought conditions being revisited on the 21 day McClellan OB/OS Oscillators. We remain of the opinion that the current near term uptrends of the charts should continue to be respected until proven otherwise.
- On the charts, all of the indexes closed higher with positive breadth and up/down volume as overall volume dipped from the previous session. New closing highs were registered on the SPX (page 2), DJI (page 2), COMPQX (page 3) and NDX (page 3). The DJT (page 4) was the weaker performer recovering a small portion of the prior day’s losses. Nonetheless, all of the short term uptrends remain intact as do the cumulative advance/decline lines for the All Exchange, NYSE and NASDAQ.
- The data has turned a bit more mixed as the McClellan 21 day readings have returned to overbought territory while the 1 day levels remain neutral (All Exchange:+21.5/+60.36 NYSE:+9.52/+67.52 NASDAQ:+35.18/+56.04). The Equity Put/Call Ratio (contrary indicator) is bearish at 0.48 as the crowd is long calls. The Total and OEX Put/Call Ratios are neutral at 0.79 and 1.06 respectively as is the OpenInsider Buy/Sell Ratio at 28.3. So the data is a bit darker but not what we would consider worrisome at this point in time.
- In conclusion, given the current state of the charts and data, we remain of the opinion that the current near term trends of the various indexes should continue to be respected until proven otherwise.