Guy S. Ortmann, CMT | Dec 08, 2021 09:24AM ET
The major equity indexes closed higher Tuesday with positive internals on the NYSE and NASDAQ as trading volumes dipped on the NYSE and rose on the NASDAQ. The strength of the gains impacted the index charts with multiple positive technical events registered while cumulative breadth improved as well.
However, the significant gains moved the 1-day McClellan OB/OS Oscillators to neutral from their prior oversold levels while the rest of the data remains neutral as well. As such, the improvement on the charts and cumulative breadth combined with the generally neutral data suggest we maintain our near-term “neutral/positive” macro-outlook for equities.
On the charts, all the major equity indexes closed higher yesterday with positive internals on the NYSE and NASDAQ. All but one of the indexes registered multiple positive technical events being registered as follows.
Looking at the data, the McClellan 1-Day OB/OS Oscillators shifted back to neutral territory (All Exchange: -7.01 NYSE: +6.14 NASDAQ: -15.36). In our opinion, this is not surprising given the depth of their prior oversold conditions that contributed to the recent rally. However, they may suggest a slowing of recent strength at current levels.
In conclusion, the issues we discussed recently that caused us to lift our near-term outlook to “neutral/positive” from “neutral” have come to fruition. We remain near-term “neutral/positive” in our macro-outlook.
SPX: 4,609/4,715 DJI: 35,233/35,923 COMPQX: 15,268/15,812 NDX: 15,888/16,417
DJT: 15,480/16,540 MID: 2,741/2,845 RTY: 2,200/2,300 VALUA: 9,553/9,930
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