2 Dominant Factors Will Determine the Market Action Here Sentiment indicators remain cautionary.
Apr 26, 2021 | 11:01 AM EDT
While investor psychology continues to suggest an excess of bullish sentiment and overvaluation persists, we believe the charts of the major equity indices and Overbought/Oversold levels remain the dominant factors for near-term market action.
On the Charts
All the major equity indices closed higher Friday with positive internals on the NYSE and Nasdaq.
Positive technical events came in the form of the Dow Jones Transports, MidCap 400 and Value Line Arithmetic Index making new all-time closing highs.
Also, the S&P 500 (see below) and DJIA managed to reclaim their near-term uptrend lines and are back in near-term bullish trends as are the rest of the indices except for the Russell 2000, which is neutral.
4 Market Indices Take a Turn Investor sentiment continues to be overly optimistic and in need of some moderation.
Apr 23, 2021 | 10:55 AM EDT
All the major equity indices closed lower Thursday. However, Nasdaq internals were only slightly negative which we find interesting given the magnitude of the afternoon selloff.
Four of the charts saw their near-term uptrend lines violated, turning said trends to neutral although no violations of price support were generated.
Meanwhile, investor sentiment continues to be overly optimistic, in our opinion, and in need of some moderation.
Where does this leave markets overall? Let s investigate.
On the Charts
Source: Worden
Index Chart Trends See a Shift The wall of worry is in need of repair.
Apr 21, 2021 | 10:31 AM EDT
There were several shifts in near-term chart trends for the major equity indices Tuesday and some violations of support. Weak breadth was sufficient to turn the cumulative advance/decline lines negative while some further bearish stochastic crossovers were registered.
One possible silver lining, however, may be coming from the two of the McClellan OB/OS Oscillators that are now in oversold territory. Nevertheless, our concerns regarding the excess of bullish investor sentiment persist, as we believe the wall of worry is in need of repair.
One Key Market Index Refuses to Join the Party As more new closing highs are registered, one index is still not in an uptrend.
Apr 19, 2021 | 10:04 AM EDT
The bulk of the major equity indices closed higher Friday with only the Dow Jones Transports posting a loss.
Internals were positive on the NYSE and negative on the Nasdaq.
The S&P 500, DJIA, Nasdaq 100, MidCap 400 and Value Line Arithmetic Index all made new closing highs.
All but the Russell 2000 (see below), which is neutral, remain in near-term bullish trends and lacking sell signals.
Market breadth, however, remains split with the All Exchange and NYSE cumulative advance/decline lines positive and above their 50-day moving averages while the Nasdaq s is negative and below its 50 DMA.