Guy S. Ortmann, CMT | May 04, 2022 09:21AM ET
Sentiment Data Sending Even Stronger Bullish Signals
All the major equity indexes closed higher Tuesday with positive internals on the NYSE and NASDAQ as trading volumes dipped on both from the prior session. All closed near the midpoints of their intraday ranges. Yet the gains were still insufficient to alter the current near-term downtrends on all the charts except for the Dow Jones Industrial Average that remains neutral.
However, we noted yesterday the positive signals coming from the investor sentiment data that has now intensified its potentially bullish implications as detailed below. As such, while the charts have yet to return to the sunlight, the sentiment data, in our opinion, is suggesting an important market reversal may be at hand over the near-term. In fact, said data has historically seen some significant progress associated with the current levels. As such, our “nibbling” comment from yesterday remains in place.
On the charts, all the major equity indexes closed higher yesterday with positive internals on the NYSE and NASDAQ on lower trade volume.
However, the data, in our opinion, has intensified its implications for some potential market strength, especially regarding sentiment.
In conclusion, although the charts have yet to confirm we are out of the correction woods, sentiment data is leaning very heavily in that direction. Some buying at current levels could prove beneficial.
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