Guy S. Ortmann, CMT | Jun 21, 2021 09:39AM ET
All the major equity indexes closed lower Friday with broadly negative internals and heavy trading volumes due to options expiration. All but two of the indexes closed below support and are now in near-term negative trends and below their 50 DMAs as all closed at or near their intraday lows.
However, some of the data is suggesting a bit of bounce in the markets may be forthcoming when the McClellan 1-day OB/OS Oscillators and the percentage of SPX stocks trading above their 50 DMAs are taken into consideration.
As such, we have reason to suspect the recent slide in the indexes may be closer to a near-term low and a poor exit point, at least for the near-term. Thus, we are inclined to maintain our current near-term “neutral/positive” macro-outlook for equities.
On the charts, all the major equities closed lower Friday with very negative internals and heavy volume with all closing art or near their lows of the day.
The McClellan 1-Day OB/OS Oscillators are now oversold on the All Exchange and NYSE, also suggesting bounce potential (All Exchange: -55.89 NYSE: -80.51 NASDAQ: -36.55).
SPX: 4,162/4,200 DJI: 33,174/34,248 COMPQX: 13,805/NA
NDX: 13,821/NA DJT: 14,242/15,181 MID: 2,580/2,650
RTY: 2,225/2,295 VALUA: 9,386/9,695
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