Guy S. Ortmann, CMT | Jan 20, 2016 08:52AM ET
Data Still Suggesting Bounce
Opinion: The indexes closed mixed yesterday but internals remained very weak as decliners outweighed advancers by nearly 2:1. Volumes remained strong but lower than the prior session while remaining negative. There is nothing on the charts at this point showing a reversal of the recent slide is in price. An obvious one day reversal may be required in order for that to be registered. However, the data continues to suggest that the markets are extremely oversold and ripe for some relief. So in spite of the negative futures this morning, we remain of the opinion that some near term relief may be close at hand. For the intermediate term, we remain cautious as market breadth remains appalling, intermediate trends are negative, no sectors have emerged as leaders and commodity prices remain weak implying weak industrial demand.
SPX: 1,872/1,950
DJI: 16,000/16,595
COMPQX; 4,418/4,711
DJT: 6,580/7,022
MID: 1,230/1,315
RUT: 982/1,052
VALUA: 3,803/4,070
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