Guy S. Ortmann, CMT | Dec 03, 2021 09:11AM ET
h2 McClellan 1-Day OB/OS Oscillators Remain Oversold/h2
The major equity indexes closed higher yesterday with positive internals on the NYSE and NASDAQ as trading volumes declined from the prior session. All closed at or near their highs of the day as late session selling failed to appear. There were a few positive technical events on the charts. However, only one index is not in a near-term downtrend. Yet, while the charts and market breadth remain negative, the data is continuing to send some positive signals as the 1-day McClellan OB/OS Oscillators remain nicely oversold while corporate insiders continue to accelerate their buying activity and stochastic readings remain very oversold. As such, the combination of the charts and 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 as trading volumes dipped from the previous session on both. The fact that they closed near their highs of the day is somewhat encouraging.
Looking at the data, the McClellan 1-Day OB/OS Oscillators remain oversold despite yesterday’s strength (All Exchange: -80.68 NYSE: -75.32 NASDAQ: -82.73). They suggest potential for further strength, in our opinion.
In conclusion, we remain “neutral/positive” in our near-term macro-outlook for equities largely due to the OB/OS levels, increasing insider buying activity, stochastic readings and the fact that we have recently seen data levels at what have typically been registered at market correction lows.
SPX: 4,473/4,588
DJI: 33,856/35,006
COMPQX: 15,019/15,4720
NDX: 15,643/16,134
DJT: 14,924/15,492
MID: 2,621/2,776
RTY: 2,130/2,250
VALUA: 9,204/9,703
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