Guy S. Ortmann, CMT | Aug 09, 2022 10:09AM ET
The major equity indexes closed mixed again Monday with positive internals on the NYSE and NASDAQ as trading volumes lifted on both. All but one closed near their intraday lows. However, once again, there were no violations of support or trend, leaving all in near-term uptrends and above their 50 DMAs, with one index closing above resistance. Yet, while the charts and market breadth remain encouraging, the data continues to imply some further pause/consolidation of the sizable gains achieved from the June lows.
The McClellan OB/OS Oscillators are overbought while the high level of investor fear, which we believe was instrumental in powering the rally, has abated notably while forward 12-month consensus earnings estimates via Bloomberg continue to be shaved. So, while we remain constructive in our overall outlook, the data is still suggesting better buying opportunities may lay ahead over the near term.
On the charts, the major equity indexes closed mixed yesterday on positive NYSE and NASDAQ internals.
On the data, the McClellan OB/OS Oscillators are still in overbought territory (All Exchange: +80.41 NYSE: +77.69 NASDAQ: +81.96). They continue to suggest the potential for a pause/consolidation of recent market gains, in our view.
In conclusion, we continue to believe the resuscitation of the markets from the June lows is real and should be honored. However, the very near-term may offer better buying opportunities.
/h2
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.