More New Closing Highs Registered

Participation Stays Selective

The main fairness indexes closed principally increased Tuesday with unfavourable internals on the whereas the ’s have been constructive. Most closed at or close to their intraday highs with all however one posting new closing highs. But whereas the cumulative advance/decline strains stay constructive, market participation stays selective, in our opinion, as mentioned under.

The info dashboard has turn into a bit extra blended however not all that threatening. As such, we’re sustaining our near-term macro-outlook for equities at “impartial” as a result of selective nature of the advances.

On the charts, the most important fairness indexes closed principally increased yesterday with solely the VALUA posting a loss.

• As effectively, the VALUA was the one index unable to publish a brand new closing excessive.
• Internals have been constructive on the NASDAQ however unfavourable on the NYSE.
• All of the indexes are in near-term uptrends.
• The cumulative advance/decline strains for the All Change, NYSE and NASDAQ are constructive and above their 50 DMAs. Nonetheless, we might be aware as we evaluation roughly 1800 inventory charts each day, it seems to us that market participation stays selective. Not all boats are rising with the tide.
• The DJT generated a bearish crossover sign however isn’t but actionable, in our view.

The info finds the McClellan 1-Day OB/OS Oscillators are principally impartial with solely the NASDAQ remaining barely overbought (All Change: +41.32 NYSE: +33.78 NASDAQ: +53.09).

• The detrended Rydex Ratio (contrarian indicator) measuring the motion of the leveraged ETF merchants dipped to 1.25 however stays in bearish territory as they continue to be leveraged lengthy.
• The Open Insider Purchase/Promote Ratio dipped to 36.7 however stays impartial.
• This week’s contrarian AAII Bear/Bull Ratio (29.67/41.53) stays impartial with the rise in bulls as does The Traders Intelligence Bear/Bull Ratio (23.8/48.9) (opposite indicator).
• Valuation finds the ahead 12-month consensus earnings estimate from Bloomberg dropping again to $214.14 for the SPX. As such, the SPX ahead a number of is 21.6 with the “rule of 20” discovering honest worth at roughly 18.5.
• The SPX ahead earnings yield is 4.62%.
• The closed decrease at 1.55%. Its uptrend stays intact with resistance at 1.70% and help at 1.47%.

In conclusion, we stay “impartial” in our near-term macro-outlook for equities primarily as a result of selectivity of market participation we observe once we take a extra granular look in our day by day evaluation of roughly 1800 particular person shares.

: 4,551/NA : 35,485/NA COMPQX: 15,327/NA : 15,426/NA

: 16,000/NA : 2,779/NA : 2,360/NA VALUA: 9,707/NA

All charts courtesy of Worden

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