Guy S. Ortmann, CMT | Dec 31, 2021 02:10PM ET
Insider Buy/Sell Ratio: Rydex Ratio Weakens Further
The major equity indexes closed mostly lower Thursday. However, in contrast to recent sessions, market internals were actually positive on the NYSE and NASDAQ as trading volumes rose from the prior session. Nonetheless, most closed near their lows of the day, with three of the charts ending below their near-term uptrend lines and are now neutral versus their prior positive slopes. The data is mixed but the Insider Buy/Sell Ratio:Detrended Rydex Ratio deteriorated a bit further. As such, while we maintain our near-term macro-outlook for equities at “neutral/positive, the charts data and valuation suggest some further consolidation of the recent rally gains is more likely before further progress may be seen.
On the charts, the indexes closed mostly lower yesterday, but internals were positive on the NYSE and NASDAQ as trading volumes rose from the prior session.
Looking at the data, the McClellan 1-Day OB/OS Oscillators remain neutral on the all exchange and NASDAQ, while the NYSE’s remains overbought (All Exchange: +45.34 NYSE: +65.33 NASDAQ: +31.57).
In conclusion, we remain “neutral/positive” in our near-term macro-outlook for equities while the charts, data and valuation suggest some further consolidation of recent gains may be more likely.
SPX: 4,694/NA
DJI: 35,960/NA
COMPQX: 15,510/15,983
NDX: 16,300/16,607
DJT: 15,983/16,524
MID: 2,777/2,866
RTY: 2,200/2,250
VALUA: 9,678/9,972
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