Market s Charts and Breadth Improve There could be more upside over the very short term.
Feb 03, 2021 | 10:15 AM EST
Every index chart managed to close above its near-term resistance level Tuesday, improving some of the near-term trends, while cumulative breadth has turned positive.
The McClellan oscillators that signaled the recent strength have yet to move into overbought conditions and remain in the middle of their neutral ranges. In our opinion, they continue to suggest some further upside potential over the very near term.
On the Charts
All the major equity indices closed higher Tuesday with positive internals.
All the indices managed to close above their near-term resistance levels while the DJIA closed back above its 50-day moving average and the S&P 500 and Value Line Arithmetic Index closed back above their near-term uptrend lines.
Charts Suffer More Damage - But Relief May Be on the Way McClellan oscillators suggest a bounce.
Feb 01, 2021 | 10:15 AM EST
All but two of the major indices suffered further technical damage Friday, leaving them in a mix of short-term negative and neutral trends. However, the data that had been broadcasting its warning signals prior to the correction have moderated to the point that may imply a near-term market bottom may have been created on Friday.
On the Charts
All the major equity indices closed lower Friday with negative internals on the NYSE and Nasdaq.
All closed at or near their intraday lows. Technical damage occurred with the S&P 500 (see below), DJIA, Nasdaq Composite, Nasdaq 100 and Russell 2000 closing below support.
Where s the Market Headed Next? What the Charts and Data Reveal Psychology data shoes slight Improvement.
Jan 29, 2021 | 10:40 AM EST
The near-term chart trends for the major equity indices remain a mix of bullish, bearish and neutral. However, we believe one data point may offer some further cushion to the markets while we have also seen some slight improvement in the psychology data.
Let s take a closer look now.
On the Charts
Source: Worden
All the major equity indices closed higher Thursday with positive internals on the NYSE and Nasdaq as trading volumes fell from the prior session.
The only technical event of importance generated, in our opinion, was the S&P 500 (see above) managing to close back above its intermediate term uptrend line that shifts its trend back to bullish from neutral.
All Index Charts Suffer Damage: What s Next for the Market? Wednesday saw broadly negative internals on heavy trading volumes.
Jan 28, 2021 | 10:45 AM EST
Virtually every major index chart suffered some technical damage Wednesday. Most are now in neutral trends. Market breadth deteriorated further as well.
Meanwhile, some of the sentiment data moderated.
Let s take close look at charts and market indicators.
On the Charts
Source: Worden
Negative technical chart events occurred as follows: The S&P 500 9see above), DJIA, Dow Jones Transports, MidCap 400 and Value Line Arithmetic Index all closed below their near-term support levels. The S&P, Nasdaq Composite and Nasdaq 100 registered bearish stochastic crossover signals.
Are Clouds Gathering for This Market? S&P 500 breadth remains on bearish divergence.
Some more worrying signs appear to be showing in the stock market.
While the bulk of the index charts remain in near-term uptrends, psychology data and valuation continue to be of concern for us.
The charts of the major equity indices saw some weakening Tuesday, with two closing below their near-term support levels while two more registered bearish stochastic crossover signals. Also, the S&P 500 and its percentage of components above their 50-day moving averages are on a bearish divergence as discussed below.
On the Charts
Source: Worden