Some Index Charts Rally to Resistance Sentiment improves slightly but remains cautionary.
How did Tuesday s positive trading session impact the charts and data from the major equity indices?
Let s check.
All the major equity indices closed higher Tuesday with generally positive internals.
However, the only technical improvement was seen on the Value Line Arithmetic Index, which managed to close back above its near-term uptrend line, turning its trend back to positive from neutral.
None of the other indices managed to achieve that status and remain neutral except for the Dow Jones Transports (see below), which remains negative.
Further, the Dow Transports did manage to trade up to its near-term resistance. However, it is not uncommon, that once a chart breaks important support as the Transports did on Monday, for said chart to test resistance and then fail in subsequent sessions. We suspect that may be the case for the Transports but await confirmation in that regard.
Is the Market Skating on Thin Ice? Most chart trends are bullish, but shock absorbers tell a different story.
Dec 28, 2020 | 10:14 AM EST
While no sell signals have appeared on the charts to date, investor sentiment levels and extended valuation continue to suggest the market s shock absorbers are very weak, leaving the markets vulnerable to any unforeseen negative news.
On the Charts
The indices closed higher Thursday with mixed internals on the NYSE and Nasdaq on light trading volume. The only technical event of note generated was the MidCap 400 (see below) posting another new all-time closing high.
The chart near-term trends are unchanged, with the S&P 500, Nasdaq Composite, Nasdaq 100, MidCap 400 and Russell 2000 bullish, as the DJIA, Dow Jones Transports and Value Line Arithmetic Index remain neutral.
Charts Send Mixed Messages 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.