NASDAQ 1-Day McClellan OB/OS Mildly Overbought
All of the major equity indexes closed higher Thursday with positive internals on the NYSE and NASDAQ with a slight lift in overall trading volumes from the prior trading session. While one index closed above near term resistance, none managed to alter their short term trends that remain a mix of positive and neutral. However, the intermediate trend of the NASDAQ’s cumulative advance/decline is of concern as discussed below. The data is generally neutral with the exception of one McClellan OB/OS Oscillator being mildly overbought and bearish. As such, we are of the opinion that the current state of the charts and data is guiding us to maintain our near term “neutral” outlook for the major equity indexes at this time.
On the charts, all of the indexes closed higher yesterday with positive internals on slightly stronger trading volumes.
- The only technical event of import was the MID (page 5) closing above its near term resistance.
- Yet that achievement was not sufficient to alter its near term neutral trend as is also the case on the DJI (page 2), DJT (page 4), RTY (page 5) and VALUA (page 5).
- Said trends are positive on the SPX (page 2), COMPQX (page 3) and NDX (page 3).
- The short term cumulative advance/decline lines remain positive on the All Exchange, NYSE and NASDAQ.
- However, the NASDAQ’s intermediate term trend remains troubling, in our view, as while the COMPQX approaches its recent all-time highs, its cumulative a/d is making a significantly lower high than that registered at its September peak. It suggests a significant deterioration of the number of stocks in that index managing to participate in rallies.
- The stochastics remain overbought on most of the indexes while high “volume at price” (VAP) levels are supportive on the SPX, DJI, COMPQX and NDX while resistance on the rest.
The data remains mostly neutral including all of the 1-day McClellan OB/OS Oscillators with the exception of the NASDAQ’s 1 day that is now mildly overbought (All Exchange:+43.01 NYSE:+35.26 NASDAQ:+53.16).