What s Next for the Markets? What the Charts and Data Reveal The Rydex Ratio has turned neutral but insider buying remains absent.
Some calming of the waters may be at hand.
While several charts of the major equity indices suffered damage in Thursday s selloff, we have reason to expect some pause or possible bounce.
The Overbought/Oversold oscillators are now nicely oversold, leveraged ETF traders have backed off of their heavily leveraged long exposure while the 10-year Treasury yield hit our expected move to 1.5%, suggesting a possible near-term peak in yield and low in price.
However, insider buying remains absent as insiders have been active sellers over the past few weeks.
Some Index Support Levels Fail: Data Suggest More Downside thestreet.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thestreet.com Daily Mail and Mail on Sunday newspapers.
Let s Examine the Markets as Multiple New Closing Highs Are Achieved Why very selective buying may still be appropriate.
All the major equity indices closed higher Thursday with positive internals.
Virtually every index managed to close above its respective near-term resistance level with the S&P 500 (see below), Nasdaq Composite, Nasdaq 100, Russell 2000 and Value Line Arithmetic Index posting new all-time closing highs.
The Dow Jones Transports managed to close back above its 50-day moving average as well as its near-term downtrend line and is now neutral as is the MidCap 400.
All the other indices are in short-term bullish trends.
Cumulative breadth remains positive on the All Exchange, NYSE and Nasdaq.