Data Neutral
Opinion
The bulk of the indexes closed lower yesterday with the one exception of the DJI closing fractionally higher. Internals were negative on the NYSE and NASDAQ as volumes rose from the prior shortened session. No support/resistance levels were violated, leaving all of the near term trends intact. The data is largely neutral. As such, while the market remains selective, it is a bit less so given the recent improvement in breadth. Thus we remain of the opinion the index charts should be respected for their individual current trends described below.
- On the charts, all of the indexes closed lower yesterday with the exception of the DJI”s (page 2) marginal gain. However no support levels were violated, leaving the current trends intact with the DJI and DJT (page 4) neutral with the rest positive. 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:+17.09/+17.47 NYSE:+12.72/+24.59 NASDAQ:+20.95/+12.51). The Equity (0.61), Total (0.72) and OEX (1.36) Put/Call Ratios are all neutral as are the Open Insider Buy/Sell Ratio (32.0) and new AAII Bear/Bull Ratio (29.0/36.33).Only the Investors Intelligence Bear/Bull Ratio (contrary indicator) remains bearish as advisors are all on the bullish side of the fence at 15.1/65.1.
- In conclusion, given the slight moderation in valuation discussed over the past few comments combined with improvement in breadth and chart trends, we remain of the opinion that the current trends should continue to be respected, on an individual basis, until proven otherwise.
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