Guy S. Ortmann, CMT | Jan 04, 2022 09:01AM ET
The major equity indexes closed mostly higher Monday with positive internals on the NYSE and NASDAQ as trading volumes rose from the prior session. The one outlier was the DJT posting a loss as the rest gained and closed near their intraday highs.
Two index charts turned positive from neutral while the DJI posted a new closing high. The data now finds the McClellan 1-day OB/OS Oscillators overbought while investor sentiment is little changed from last week’s outlook.
We would also note the sizable lift in consensus forward 12-month earnings estimates from Bloomberg from $216.01 to 222.07 as a new forward quarter was added. We remain near-term “neutral/positive” in our macro-outlook for equities.
On the charts, the indexes closed mostly higher yesterday with positive internals on higher trading volume for both the NYSE and NASDAQ. Only the DJT posted a loss as the rest gained and closed near their highs of the day.
The data finds the McClellan 1-Day OB/OS Oscillators overbought across the board (All Exchange: +63.38 NYSE: +73.51 NASDAQ: +55.46).
In conclusion, we remain “neutral/positive” in our near-term macro-outlook for equities although some of the data is suggesting possible slowing of strength, given the OB/OS levels.
SPX: 4,694/4,800 DJI: 35,960/NA COMPQX: 15,510/15,896 NDX: 16,300/16,607
DJT: 15,983/16,524 MID: 2,777/2,866 RTY: 2,230/2,300 VALUA: 9,678/9,972
/h2
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