Guy S. Ortmann, CMT | Nov 18, 2021 09:09AM ET
The major equity indexes closed lower Wednesday with negative internals on the NYSE and NASDAQ as trading volumes declined from the previous session. Most closed at or near their intraday lows as late session buying failed to appear. Two of the index charts shifted their near-term trends lower, leaving the charts in a mix of bullish, neutral and bearish near-term trends.
However, the DJI closed at its intermediate term uptrend from March, suggesting a possible bounce. Cumulative market breadth deteriorated as well with all now short term negative while some bearish stochastic crossover signals were also generated.
Regarding the data, it is mostly neutral except for the Detrended Rydex Ratio still showing the leveraged ETF traders staying leveraged long and cautionary. We remain near-term “neutral” in our macro-outlook for equities.
On the charts, the major equity indexes closed lower yesterday with negative internals on lighter trading volume. Most closed near their lows of the session.
The data finds the McClellan 1-Day OB/OS still in neutral territory (All Exchange: -38.43 NYSE: -42.53 NASDAQ: -36.52).
In conclusion, while the futures indicate a positive open, the status of the charts and data suggest we maintain our near-term “neutral” macro-outlook for equities.
SPX: 4,620/4,717A DJI: 35,904/36,203 COMPQX: 15,598/16,020 NDX: 15,975/16,380
DJT: 16,000/16,915 MID: 2,872/2,907 RTY: 2,360/2,400 VALUA: 9,937/10,151
All charts courtesy of Worden
h2 S&P 500/h2/h2
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