Data Unavailable
Opinion: The indexes closed mixed Friday with mixed internals on the NYSE and negative internals on the NASDAQ. Both exchanges saw a rise in trading volume from the prior session but little change in price. No technical events of import were generated while the data is unavailable this morning but likely little changed from its prior generally neutral tone. As such, we remain near term “neutral/positive” while valuation near its upper range keeps us “neutral” for the intermediate term.
- The indexes closed mixed on Friday with the SPX (page 2), DJI (page 2), COMPQX (page 3) and DJT (page 3) closing fractionally lower while the MID (page 4), RUT (page 4) and VALAUA (page 5) posted minor gains. No technical events of note were generated. All of the stochastic readings remain overbought but have yet to flash bearish crossover signals. All of the current uptrends remain intact.
- The data, which was generally neutral on Friday, is not available this morning. However, given the muted tone of Friday’s session, we suspect it is little changed in its benign message.
- In conclusion, the narrow action of the indexes over the past two sessions in combination with the charts and data leave us “neutral/positive’ in our short term outlook. While market breadth remains quite healthy, forward valuation levels for the SPX remain high enough to keep us “neutral” for that timeframe as it is near historically peak levels. Some lift in forward earnings consensus is needed to relieve that concern, in our opinion.
- Forward 12 month earnings estimates for the SPX from IBES of $123.79 leave a 5.94% forward earnings yield on a 16.8 forward multiple.
SPX: 2,061/2,094
DJI: 17,541/8,114
COMPQX; 4,836/5,001
DJT: 7,692/8,073
MID: 1,423/1,473
RUT: 1,093/1,146
VALUA: 4,437/4,624