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.
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