Guy S. Ortmann, CMT | Jul 24, 2017 08:31AM ET
Valuation & Margin Debt Remain Concerns
Opinion: All of the indexes closed modestly lower Friday with negative internals on the NYSE and NASDAQ as volumes declined from the prior session on both exchanges. No technical events of import were generated on the charts, leaving all of the near term trends intact. The data is mixed yielding a neutral projection. So while we maintain our technical view that the near term chart trends should be respected until proven otherwise, historically high valuation combined with excessive levels of margin debt continue to suggest that downside risk levels in the market are quite high at the present.
SPX: 2,429/NA
DJI: 21,305/NA
NASDAQ: 6,258/NA
DJT: 9,428/9,727
Mid: 1,746/NA
RTY: 1,426/NA
VALUA: 5,565/NA
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