Guy S. Ortmann, CMT | Jan 07, 2022 09:35AM ET
The major equity indexes closed mixed yesterday with positive NYSE internals while the NASDAQ’s were negative. Trading volumes declined from the prior session on both exchanges. No significant technical events happened on the charts other than the COMPQX bouncing off of its long-term uptrend line as commented on in yesterday’s note. So far, the holding of said trend is a positive. Yet, no changes were seen in the mix of neutral and negative near-term trends. The data is largely neutral and yielding no strong near-term implications. Forward 12-month earnings estimates for the SPX, however, continued to lift. As such, in our opinion, no evidence as presented yesterday that was sufficient to alter our near-term “neutral/positive” macro-outlook for equities.
On the charts, the indexes closed mixed yesterday with positive NYSE internals as the NASDAQ’s were negative.
The data finds the McClellan 1-Day OB/OS Oscillators still neutral (All Exchange: +2.55 NYSE: +16.81 NASDAQ: -8.43).
In conclusion, as the market’s try to stabilize from the panic earlier this week, current investor sentiment, improved valuation, the neutral data and successful tests of long-term uptrends suggest we maintain our current “neutral/positive” macro-outlook for equities.
SPX: 4,694/4,477
DJI: 35,922/36,300
COMPQX: 15,000/15,510
NDX: 15,740/16,033
DJT: 16,213/16,765
MID: 2,777/2,866
RTY: 2,180/2,200
VALUA: 9,837/9,985
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