Meanwhile, there was some slight improvement in cumulative breadth while the McClellan OB/OS Oscillators are all in neutral territory. Investor psychology saw a bit of an improvement as well with corporate insiders continuing their recent buying activity.
As such, we see no cause to alter our current “neutral/positive” macro-outlook for equities, although we continue to focus on the degree of selectivity in market advance participants.
On the charts, the major equity indexes closed mixed yesterday with positive internals on the NSYE and NASDAQ as trading volumes declined.
The data finds all the McClellan 1-Day OB/OS in neutral territory (All Exchange: -11.4 NYSE: -12.35 NASDAQ: -10.2).
In conclusion, the improvement recently seen in the psychology data combined with insider buying and slight improvement in market breadth suggests we maintain our current “neutral/positive” near-term macro-outlook for equities with the caveat that selectivity remains a factor.
SPX: 4,350/NA DJI: 34,580/NA COMPQX: 14,544/NA NDX: 14,800/NA
DJT: 14,100/14,905 MID: 2,628/2,691 RTY: 2,120/2,225 VALUA: 9,145/9,550