2 Index Charts Flash Bearish Gravestone Doji Signals Sentiment Data Still Suggests Too Many Bulls Currently
The charts say caution is warranted.
Indeed, with Monday s declines, some 50-day moving averages of the major equity indices were violated to the downside and a few gravestone doji signals appeared. Meanwhile, the psychology data continues to suggest an excess of bullish expectations on the part of investors persists while insiders have yet to show any significant interest in buying their stocks at current levels.
So, while the proverbial horse may have left the barn, the new chart signals combined with the sentiment data suggest we shift our near-term macro-outlook for equities from neutral/positive to neutral .
Market Dashboard: Split Performance, Chart Trends and Data Sentiment data continue to suggest an excess of bullish sentiment persists.
May 10, 2021 | 10:26 AM EDT
The recent split performance of the major equity indices has yet to show signs of abating, with most of them in near-term bullish trends.
All the indices closed higher Friday with positive internals on the NYSE and Nasdaq.
Most closed at or near their intraday highs except for the Nasdaq Composite and Nasdaq 100 closing near their midpoints as they continue their recent underperformance.
The S&P 500, DJIA, Dow Jones Transports, MidCap 400 and Value Line Arithmetic Index posted new all-time closing highs.
Keeping a Close Watch on a Bifurcated Market We are keeping our eyes peeled for a potential shift in index performance.
May 07, 2021 | 10:00 AM EDT
The outperformance of the economically sensitive stocks continues versus large-cap growth. The major equity indices remain a mix of neutral, negative and positive trends. Cumulative breadth remains split as well.
Regarding the data, most remain in neutral territory except for sentiment that is still sending a cautionary message due to what appears to be an excess of bullish expectations for the market.
However, we are keeping our eyes peeled for a potential shift in the current bifurcated index performance.
Several Index Chart Trends Turn Neutral Here s where we stand in the market as May begins.
May 03, 2021 | 10:23 AM EDT
Several of the charts of the major equity indices saw their near-term uptrend lines violated Friday while also generating bearish stochastic crossover signals as cumulative market breadth weakened slightly.
The data, however, is still in neutral territory while the psychology data continues to suggest an excess of bullish sentiment as forward 12-month earnings estimates for the S&P 500 continue to rise.
On the Charts
Source: Worden
All the major equity indices closed lower Friday with negative internals on the NYSE and Nasdaq.
A Close Look at Where the Market Stands Now Our latest analysis of the trends, charts and data shaping the stock market.
Apr 28, 2021 | 10:15 AM EDT
Three of the major equity index charts made new closing highs Tuesday while the near-term trends remain largely positive. Cumulative market breadth remains positive as well.
So, what s not to like?
On the data side, the psychology levels continue to suggest an excess of bullish market expectations on the part of investors, both individual and investment advisors, as well as leveraged ETF traders. And forward 12-month consensus earnings estimates for the S&P 500 continue to rise while the rule of 20 suggests overvaluation persists.