Guy S. Ortmann, CMT | May 06, 2021 09:53AM ET
Near-Term Chart Trends Unchanged
The major equity indexes closed mixed Wednesday with positive internals on the NYSE while the NASDAQ internals were negative as the equity indexes continued their mixed performance. Two new closing highs were achieved while the range of near-term chart trends were unchanged with a combination of bullish, neutral and bearish near-term projections. Market breadth remains mixed as well with some positive and some negative. Meanwhile, the data remains generally neutral with the exception of psychology that still suggests some excess of bullish expectations. In short, the recent bifurcated action of the markets continues with no signs of shifting at present. However, in our opinion, the move into the economic recovery stocks appears a bit extended on the charts while some of the growth names that have suffered recently are now trading at very reasonable PEGs (P/E/growth), in our opinion.
On the charts, the indexes closed mixed yesterday with positive NYSE internals with the NASDAQ’s negative.
On the data, the McClellan 1-Day OB/OS oscillators remain neutral (All Exchange: -23.04 NYSE: -7.75 NASDAQ: -36.44).
In conclusion, the recent bifurcation of the markets and data still suggests we maintain our near-term “neutral/positive” macro-outlook for equities.
DJI: 33,800/NA
COMPQX: 13,466/13,881
NDX: 13,316/13,755
DJT: 14,920/NA
RTY: 2,250/2,300
VALUA: 9,293/9,500
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