Data Unavailable
Opinion: The indexes closed mixed Tuesday with positive internals on the NYSE while NASDAQ internals were negative. Volumes declined on both exchanges from the prior session. Some marginal new closing highs were achieved on the charts while two others noted possible caution. All of the near term uptrends remain intact. The data is unavailable this morning. So although we find valuation at a new peak level, the positive chart trends are intact suggesting, in our opinion, that said trends should be respected until proven otherwise.
- On the charts, the indexes closed mixed yesterday on lighter volume. The SPX (page 2), DJI (page 2), COMPQX (page 3), NDX (page 3) and DJT (page 4) closed lower on the day with the COMPQX and NDX flashing “bearish stochastic crossover” signals. However, we would consider the signals actionable if support levels or trends were to be violated. As yet, that is not the case. The MID (page 4), RTY (page 5) and VALUA (page 5) closed higher with the MID and VALUA posting marginally higher new closing highs. As of the last available data, the cumulative advance/decline lines for the All Exchange and NYSE are positive and above their 50 DMAs with the NASDAQ cumulative A/D neutral and below its 50 DMA. The short term uptrends for all of the indexes are still positive and above their 50 DMAs.
- The data is unavailable this morning but valuation is at a new peak level as noted yesterday at a 19.1 multiple of forward 12 month consensus earnings estimates via Bloomberg.
- In conclusion, and in spite of valuation concerns, we remain of the opinion that the current near term trends of the indexes should continue to be respected until proven otherwise.
- Forward 12 month earnings estimates for the SPX from Bloomberg of $140.60 leave a 5.31 forward earnings yield on an 19.1 forward multiple.
SPX: 2,626/NA
DJI: 24,318/NA
COMPQX; 6,826/NA
NDX: 6,333/NA
DJT: 10,340/NA
MID: 1,883/NA
RTY: 1,525/NA
VALUA: 5,967/NA