Guy S. Ortmann, CMT | Jul 21, 2021 09:35AM ET
All the major equity indexes closed higher yesterday with positive internals on the NYSE and NASDAQ with NYSE volumes declining from the prior session as the NASDAQ’s rose.
The charts did manage to register a few positive technical events. However, the majority remained in near-term downtrends while cumulative breadth remains negative. The McClellan 1-day OB/OS Oscillators remained somewhat oversold post their projection of a market bounce yesterday morning.
However, the balance of the data still leaves a lot to be desired. So, the question now is, “Is yesterday’s advance merely a rally to resistance for the indexes that fail, or is it the beginning of a recovery?” From our perspective, the jury is still out. As such, we are maintaining our current “neutral/negative” macro-outlook for equities at this point in time.
On the charts, all the major equity indexes closed higher yesterday with positive internals on the NYSE and NASDAQ as all closed at or near their intraday highs.
The data finds all the McClellan 1-Day OB/OS are still somewhat oversold in spite of yesterday’s significant gains and may offer a bit more upside push (All Exchange: -62.29 NYSE: -68.12 NASDAQ: -56.45).
In conclusion, yesterday’s oversold bounce was quite a relief. However, there was not, as yet, enough of a shift in chart trends, market breadth and data to alter our near-term “neutral/negative” equity outlook until we have a greater sense that we are witnessing something better than rallies to resistance that may fail.
SPX: 4,234/4,341 DJI: 33,595/34,460 COMPQX: 14,169/14,5912 NDX: 14,485/14,876
DJT: 14,247/14,905 MID: 2,572/2,665 RTY: 2,120/2,225 VALUA: 8,953/9,396
/h2
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