Data UnavailableOpinion
All of the indexes closed higher Friday with positive internals on the NYSE and NASDAQ as volumes dipped from the prior session on the NYSE while NASDAQ volumes rose. New closing highs were achieved on several of the index charts. The data is unavailable this morning. Valuation is starting to get extended again. However, with the exception of the DJT, all of the indexes remain in positive trends leaving us unchanged in our opinion that the current near term trends of the indexes should continue to be respected until proven otherwise.
- On the charts, all of the indexes closed higher Friday with positive internals with only the DJT (page 4) and RTY (page 5) unable to post new closing highs. All of the near term uptrends of the indexes remain intact with the exception of the DJT that is neutral due to its closing below its support and near term uptrend line last Thursday, thus turning its trend to neutral from positive. The cumulative advance/decline lines for the All Exchange, NYSE and NASDAQ remain positive and above their 50 DMAs.
- The data is unavailable this morning.
- Extended valuation is starting to creep back into the picture as the recent rise in forward earnings estimates for the SPX is being surpassed by the rally in the index, bringing its forward 12-month p/e based on forward 12 month earnings estimates to an 18.7 multiple.
- In conclusion, while valuation is starting to become a concern once again and the DJT has weakened, we still do not see enough of a shift in the weight of the evidence at this stage to alter our opinion that the near term trends of the various indexes should be respected until proven otherwise.