No Data Available
The indexes closed mixed Friday with negative internals on the NYSE and NASDAQ as volumes declined on both exchanges from the prior session. There was a combination of positive and negative technical events on the charts while the data from Friday’s close is not available this morning. As such, we will focus on the charts for this report while maintaining our “neutral/positive” near term outlook for the major equity indexes in place.
- On the charts, the indexes closed mixed with negative internals but on lighter trading volume. The MID (page 4) and RTY (page 5) closed lower as the balance registered minor gains. The COMPQX (page 3) and NDX (page 3) made marginal new closing highs. However, both the MID and VALUA (page 5) saw “bearish stochastic crossover” signals generated, suggesting some possible near term caution for those indexes. As well, both the RTY and VALUA closed below their shot term uptrend lines, turning their trends to neutral from positive, joining the DJT (page 4). The rest of the indexes are in uptrends but with overbought stochastic levels.
- Unfortunately, there is no data available this morning. However, given its prior generally neutral message, we suspect Friday’s minor action may have had little impact. Valuation finds consensus forward 12 month earnings estimates for the SPX of $167.54 leaving the forward 12 month p/e for the SPX at 16.7 versus the “rule of 20” implied fair value at a 17.2 multiple and a 5.98% earnings yield.
- In conclusion, while some yellow flags appeared Friday, at this point in time we do not see enough coming from the charts or data to cause an altering of our current near term “neutral/positive” outlook for the major equity indexes.
- SPX: 2,741/2,813
- DJI: 24,300/25,163
- Nasdaq: 7,691/NA
- NDX: 7,199/NA
- DJT: 10,436/10,771
- MID: 1,968/NA
- Russell: 1,654/1,712
- VALUA: 6,365/6,487
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