Guy S. Ortmann, CMT | Oct 05, 2021 09:21AM ET
All the major equity indexes closed lower Monday with negative internals on the NYSE and NASDAQ where NYSE volumes rose from the prior session as the NASDAQ volumes decline. Once again, all closed at or near their intraday lows as late session buying failed to appear.
Two of the indexes violated near-term support levels and were testing important long term uptrend lines that, if violated, would add another cloud to the forecast. Near-term chart trends remain a mix of neutral and bearish projections. Meanwhile the data remains largely neutral, including the 1-day McClellan OB/OS Oscillators that have yet to find their levels in oversold territory. As such, we have yet to see evidence presented via our discipline that would suggest a change in our current near-term “neutral/negative” macro-outlook for equities would be justified.
On the charts, all the major equity indexes closed lower Monday with negative internals on the NYSE and NASDAQ as all closed at or near their intraday lows as late session buyers failed to appear.
The data finds the McClellan 1-Day OB/OS Oscillators remaining neutral despite the weakness and have yet to enter oversold territory (All Exchange: -23.23 NYSE: -17.05 NASDAQ: -28.33).
In conclusion, yesterday’s action did not present any evidence to warrant a change in our near-term “neutral/negative” macro-outlook for equities as the chart trends, breadth and the data remain cautionary.
SPX: 4,228/4,384 DJI: 33,600/34,539 COMPQX: 14,030/14,670 NDX: 14,054/14,920
DJT: 13,976/14,290 MID: 2,617/2,680 RTY: 2,200/2,280 VALUA: 9,361/9,590
All charts courtesy of Worden
h2 S&P 500/h2
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