Guy S. Ortmann, CMT | Jun 22, 2022 09:13AM ET
All the major equity indexes closed higher Tuesday with positive internals on the NYSE and NASDAQ as trading volumes declined on both. While most closed near the midpoints of the session, several indexes managed to close above their accelerated downtrend lines, turning their trends to neutral from bearish. Yet, with these improvements, intermediate downtrends remain intact that, in our view, require a higher high and higher low to become more convincing that a positive shift is occurring. Breadth saw some modest improvement as well. Looking at the data, the McClellan OB/OS Oscillators are neutral, but the sentiment data is quite bullish. So, while some rays of light are peaking through the clouds, we believe some further improvement is required to be more confident in a positive turn for the indexes.On the charts, all the indexes closed higher yesterday with positive internals on lighter volume. Most closed near their midpoints of the session.
Regarding the data, the McClellan OB/OS Oscillators are all neutral (All Exchange: -2.73 NYSE: -25.98 NASDAQ: +15.2).
In conclusion, while the charts and market breadth saw some improvement, offering some encouragement, they were not quite strong enough to become convincing. Meanwhile, sentiment and valuation suggest upside. Still, we believe some further chart and breadth strength is necessary to be more confident that a positive market turn is imminent.
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