Guy S. Ortmann, CMT | Sep 23, 2021 09:45AM ET
The majority of the major equity indexes closed mostly higher yesterday except for the DJT posting a loss. Internals were broadly positive on the NYSE and NASDAQ as trading volumes rose from the prior session. While the charts did a few positive technical events, the strength of yesterday’s trading still left all the index charts in near-term downtrends. However, there was some slight improvement in cumulative market breadth while insider buying saw a notable uptick, suggesting they were buyers of the recent market weakness.
The data remains mostly neutral. Our net takeaway is the markets may see some continuation of yesterday’s bounce. Nonetheless, the fact that the charts have violated uptrends that had been intact for the past several months and remain in downtrends suggest the possibility that the current bounce may result in tests of resistance that may fail. Thus, we are keeping our near-term macro-outlook for equities at “neutral/negative.”
On the charts, the only major equity index to post a loss yesterday was the DJT as the rest advanced with positive internals on the NYSE and NASDAQ as trading volumes rose on both exchanges.
The data finds the McClellan 1-Day OB/OS Oscillators neutral across the board (All Exchange: +3.02 NYSE: -4.31 NASDAQ: +8.26).
In conclusion, while yesterday’s strength saw an improvement in breadth and insider activity, the recent break of months long trends leaves us near-term “neutral/negative” as rallies to resistance may fail.
SPX: 4,310/4,444 DJI: 33,598/34,745 COMPQX: 14,554/15,013 NDX: 14,836/15,379
DJT: 13,930/14,364 MID: 2,600/2,685 RTY: 2,195/2,235 VALUA: 9,225/9,507
Charts source: Worden
h2 S&P 500/h2
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