The charts of the major equity indices remain positive with trends that should be respected until proven otherwise. However, psychology and valuation suggest investors keep tight reins on their enthusiasm.
Here’s our take on the latest charts and market data.
On the Charts
All the equity indices closed lower Tuesday with negative internals on the NYSE and Nasdaq. However, the weakness did not result in any important technical signals being generated as all uptrends and support levels remained intact.
All the charts remain in near-term uptrends, above support and above their 50-day moving averages.
The stochastic levels remain overbought but have as yet to register bearish crossover signals. Breadth remains positive with the cumulative advance/decline lines for the All Exchange, NYSE and Nasdaq in uptrends and above their 50 DMAs.
Data Send Mixed Signals
The one-day McClellan Overbought/Oversold Oscillators saw declines in their overbought conditions to a larger degree than