Guy S. Ortmann, CMT | Nov 24, 2020 11:29AM ET
The major equity indexes closed mostly higher yesterday with the exception of the NDX posting a fractional loss. Internals were positive on the NYSE and NASDAQ as trading volumes rose on both exchanges form the prior session. Two of the indexes closed at new all-time highs while the indexes remain evenly split between neutral and positive near-term trends. Meanwhile, the data continues to suggest a rather elevated level of risk in the market as the market shock absorbers are weak and vulnerable should some unforeseen negative news hit the tape. As such, we are maintaining our near-term “neutral” outlook for the equity markets at this time.
On the charts, the bulk of the major equity indexes closed higher yesterday with positive internals and strong trading volumes on the NYSE and NASDAQ.
The data, however, continues to suggest the market is at a fairly high level of risk as the “shock absorbers” appear to be weak and likely unable to withstand selling pressure should negative news hit the tape.
In conclusion, the charts, in our opinion, have yet to generate any notable sell signals. Nonetheless, Rydex leverage, insider selling and valuation suggest there is a fairly high level of risk present should unexpected negative news appear.
SPX: 3,522/3,618
DJI: HVS28,440/29,796
COMPQX: HVS11,477/11,958
NDX: HVS11,611/12,185
DJT: HVS11,603/NA
MID: HVS2,016/NA
RTY: 1,700/NA
VALUA: HVS7,011/NA
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