Data Mixed
Opinion
The bulk of the indexes closed higher Friday with positive internals on the NYSE and NASDAQ as volumes dipped from the prior session, The DJI was the only index unable to close higher on the day. All of the near term index trends remain neutral in spite of the session’s gains while the data is mixed with a slightly positive tilt. While Friday’s action was encouraging, we have yet to see enough evidence to alter our near term “neutral” outlook for the major equity indexes.
- On the charts, all of the indexes, with the one exception of the DJI (page 2) closed higher on the day with positive internals. We find the action encouraging as early session weakness was reversed with positive internal breadth on both the NYSE and NASDAQ. One positive technical event was registered as the COMPQX (page 3) managed to close above its near term resistance. Yet by our work, all of the near term trends remain neutral for the indexes while the cumulative advance/decline lines for the All Exchange, NYSE and NASDAQ, although improving, remain negative and below their 50 DMAs. As such, the charts continue to suggest to us that the sideways chop post the early February selloff continues to work itself out. Our suspicion is that the positive trends will resume, but it is too early to make a technical case for it actually having occurred.
- The data is mixed with a slightly positive tilt. All of the McClellan OB/OS Oscillators are neutral (All Exchange:+3.51/-15.35 NYSE:-4.63/-16.84 NASDAQ:+10.52/-10.5). The Open Insider Buy/Sell Ratio is neutral as well at 31.7. The mild positive data is coming from the put/call ratios. The Total and Equity P/Cs (contrary indicators) find the crowd weighted in puts at 1.16 and 0.71 while OEX Put/Call Ratio now finds the pros flipping from being long puts to now long calls at 0.51.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
- In conclusion, we remain of the opinion that the indexes are still attempting to stabilize post the sharp and sudden correction last month, resulting in some sideways give and take until being resolved. While we suspect the resolution will be positive, it is too early, given the state of the data and charts, to make that call. Thus we remain near term neutral in our outlook.