Data Remains MixedOpinion
Most of the indexes closed lower Friday with the exceptions of the NDX and COMPQX. Internals were negative in the NYSE while NASDAQ internals were mixed. Volumes declined from the prior session on both exchanges. No technical events of import were generated on the charts, leaving all of the near term uptrends intact as well as the cumulative advance/decline lines. The data remains mixed and largely uninstructive. As such, we remain of the opinion that the near term uptrends of the various indexes should continue to be respected with the one caveat that valuation is stretched from an historical perspective.
- On the charts, the NDX (page 9) and COMPQX (page 3) made new closing highs Friday while the rest of the indexes closed lower on the session. No support levels or uptrend lines were violated although the DJT (page 3) did flash a bearish stochastic crossover signal. However, support would need to be violated I order to become negative. As such, all of the uptrends, support levels and cumulative advance/decline lines remain intact.
- The data is mixed and not yielding any clear signals, in our view. The 1-day McClellan OB/OS Oscillators are neutral while the 21 day readings are overbought (All Exchange:+23.07/+80.25 NYSE:+4.75//+80.31 NASADQ:+42.9/+87.77). The Total and Equity Put/Call Ratios (contrary indicators) are mildly bullish at 0.87 and 0.7 respectively with the OEX Put/Call Ratio a bearish 1.61. The Open Insider Buy/Sell Ratio remains in neutral territory at 45.1. As such there is no clear forecast coming from the data dashboard.
- In conclusion, while extended forward valuation of the SPX remains a concern, we have yet to see anything on the charts to warrant a shift in our current opinion that the near term uptrends of the indexes should still be respected until proven otherwise.