Data Unavailable
Opinion
All of the indexes closed higher yesterday with positive internals as volumes rose from the prior session on both the NYSE and NASDAQ. The index charts saw several technical improvements including multiple violations of resistance, thus improving their outlook. The data is unavailable. Yet if we focus strictly on the chart action, while several resistance levels still need to be overcome as well as improvement in breadth, we are inclined to shift our “neutral” near term outlook to “neutral/positive”.
- On the charts, the indexes saw more bullish action yesterday as all closed higher with positive internals on higher volume. Importantly, resistance levels on the SPX (page 2), COMPQX (page 3), MID (page 4), RTY (page 5) and VALUA (page 5) were violated. As well, both the COMPQX and VAUA closed above their short term downtrend lines turning their trends to neutral from negative. All of this action took place in spite of some disappointing economic data being released prior to the open. Yet with all of the positive action, we would not get too carried away. All of the charts remain well below their recent highs with more resistance levels (listed below) to be contended with. Nonetheless, recent action has been quite positive, suggesting more credibility to our supposition that the markets did see a washout of selling pressure last Friday resulting in probable market lows being registered.
- The data is unavailable this morning.
- In conclusion, recent action including some violations of resistance and downtrends are encouraging, resulting in our altering our near term outlook from “neutral” to “neutral/positive”.