Data Largely Neutral
The bulk of the indexes closed lower yesterday with the one exception of the DJT. Internals were mixed with a negative breadth on both the NYSE and NASDAQ as both exchanges saw positive up/down volumes. Volumes rose on the NYSE from the prior session while NASDAQ volume dipped. There were no changes on the charts regarding their current uptrends while the vast majority of the data is back at neutral levels. Thus, our opinion remains that the near term uptrends of the various indexes should continue to be respected until; proven otherwise.
- On the charts, the only index closing higher yesterday was the DJT (page 4) posting a new closing high. The rest declined with negative breadth for the day. However, all of the near term uptrend lines remain intact as do the support levels. The cumulative advance/decline lines for the All Exchange, NYSE and NASDAQ remain positive and above their 50 DMAs.
- The data is largely neutral including all of the McClellan OB/OS Oscillators (All Exchange:+4.47/+35.18 NYSE:-6.33/+44.75 NASDAQ:+14.29/+26.26). The Equity (0.65) and Total (0.72) Put/Call Ratios are neutral as is the OpenInsdier Buy/Sell Ratio at 28.7. The only bearish signal is coming from the OEX Put/Call Ratio at 1.88 showing the pros long puts and expecting some weakness near term.
- Forward consensus earnings estimates for the SPX from Bloomberg rose slightly to $149.97 dipping the forward p/e to 18.3.
- In conclusion, most of the near term concerns voiced in these reports over the past two days have been alleviated, at least on the data side. As such, we continue to believe the best course of action is to respect the current near term uptrends of the indexes until proven otherwise.
- Forward 12-month earnings estimates for the SPX from Bloomberg were raised to $149.97, leaving a 5.46 forward earnings yield on a 18.3 forward multiple.
- : 2,671/NA
- : 24,678/NA
- : 6,890/NA
- : 6,400/NA
- : 10,582/NA
- : 1,893/NA
- : 1,525/NA
- VALUA: 6,072/NA