Data Mostly Neutral
The indexes closed mostly higher Friday with mixed internals on the NYSE while those on the NASDAQ were positive. The only technical event of import was the RTY making a new closing high. The data remains largely neutral with a few positive signals. As such, we are maintaining our near term “positive” outlook for the major equity indexes in place.
- On the charts, all of the indexes closed higher Friday with the two exceptions of the DJI (page 2) and DJT (page 4) closing lower in the day. NYSE internals saw positive breadth but negative up/down volume. NASDAQ internals were positive. The only technical event of note was the RTY (page 5) making another new closing high. All of the indexes are in short term uptrends as are the cumulative advance/decline lines for the All Exchange, NYSE and NASDAQ.
- The data is mostly neutral. All of the McClellan OB/OS Oscillators are neutral with the one exception of the NYSE 21 day that is slightly overbought (All Exchange: +22.72/+43.6 NYSE:+4.37/+50.07 NASDAQ:+39.91/+42.26). The Equity Put/Call Ratio (0.63), Open Insider Buy/Sell Ratio (35.6) and AAII Bear/Bull Ratio (29.0/36.67) are neutral as well. Bothe the Total P/C (contrary indicator) and OEX P/C (0.81) are bullish. Valuation finds consensus forward 12 month earnings estimates for the SPX at $168.98, leaving the forward 12 month p/e for the SPX at 17.2 versus the “rule of 20” implied fair value of a 17.2 multiple. The “earrings yield” stands at 5.82%.