Guy S. Ortmann, CMT | Oct 11, 2021 09:16AM ET
The major equity indexes closed mostly lower Friday with mixed internals on the NYSE while the NASDAQ saw negative breadth and negative up/down volume. The majority closed at or near their intraday lows. The one exception to the declines was the DJT that closed above resistance and is now in a near-term positive trend, in our opinion.
As such, the chart trends remain mixed while the data is generally neutral with the exception of insiders increasing their selling activity. Also of note was the rise in the 10-year Treasury yield to just shy of resistance as it continued to rise. The net result of Friday’s action suggests our near-term “neutral/negative” macro-outlook for equities remains appropriate.
On the charts, the only index to post a gain Friday was the DJT as it managed to close above resistance and is now in a near-term uptrend, in our view. The rest posted losses with generally negative internals on the NYSE and NASDAQ on lighter trading volume from the previous session.
The data finds the McClellan 1-Day OB/OS Oscillators remaining neutral (All Exchange: +5.88 NYSE: +15.37 NASDAQ: -0.61).
In conclusion, Friday’s action left our near-term market concerns generally intact. As such, we are maintaining our near-term “neutral/negative” outlook for equities in place.
SPX: 4,300/4,427 DJI: 33,914/34,951 COMPQX: 14,292/14,670 NDX: 14,509/14,920
DJT: 14,256/14,731 MID: 2,624/2,723 RTY: 2,200/2,280 VALUA: 9,361/9,590
All charts courtesy of Worden
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