Yet, there was some deterioration of market breadth that suggests selectivity is likely to continue.
The data finds the McClellan 1-day OB/OS Oscillators slipping back into oversold territory while insiders did a bit of buying on the session’s weakness. Only the psychology data remains cautionary at this point.
As such, despite yesterday’s declines, we did not see a sufficient shift in the weight of the evidence to alter our near-term “neutral/positive” macro-outlook for equities. We would, however, reiterate the high degree of selectivity involved in upside participation.
On the charts, all the indexes closed lower yesterday with negative internals on the NYSE and NASDAQ as volumes rose.
The data finds all the McClellan 1-Day OB/OS slipping back into oversold territory with varying degrees (All Exchange: -55.1 NYSE: -50.84 NASDAQ: -58.55).
In conclusion, yesterday’s softness, while weakening breadth, left the chart trends unchanged and the data somewhat benign. As such, we are maintaining our near-term “neutral/positive” macro-outlook for equities.
RTY: 2,180/2,225 VALUA: 9,461/9,672