Short-Term (days/weeks) : further modest weakness to late February for US equity indices, use as a buying opportunity

Short-Term (days/weeks) : further modest weakness to late
February, use as a buying opportunity
The S&P 500 and key US equity indices were mixed last week : the DJIA and
S&P 500 were slightly lower and the Nasdaq Composite and Nasdaq 100 were
both slightly higher. All four indices turned down at trend resistance ; the S&P
500 and DJIA were testing trend support at the end of the week while the Nasdaq
100 was breaching trend support.
Daily OB/OS momentum indicators all turned negative last week and were
mostly very modestly oversold at the close on Friday.
Updated DJIA/NYSE ITI analogs (peaks in the 70% range) suggest 2% further
weakness for the DJIA/S&P 500 over the next two weeks or so : see analog
chart, page 2.
Almost all DJIA/Pre-Election Year analogs suggest a still-positive short-term
trend : see analog chart, page 3. On balance, see further modest short-term
weakness to late February which should be used as a buying opportunity. See
Daily OB/OS Charts, attached.
Intermediate-Term (weeks/months): still positive
US intermediate indicators of breadth and momentum were mixed week-on-week
at the close on Thursday:
 NYSE and Nasdaq Composite Intermediate Term Indicators fell,
 Nasdaq 100 Intermediate Term Indicator and Money Flow of the Average
NYSE Stock were unchanged and
 Percentage of S&P 500 Groups with Positive Money Flow was higher.
US equity indices were also mixed week-on-week at the close on Thursday : the
DJIA was slightly lower and Nasdaq Composite and Nasdaq 100 were slightly
higher. The DJIA is breaching intermediate trend support from the October low.
See Weekly Charts, attached.
Mixed intermediate indicators and equity indices suggests an intermediate
consolidation (modest weakness in a positive longer-term trend) for US equity
indices. The NYSE ITI analog model still looks relevant and points to further
weakness to end February, then a rally to new short-term highs to mid-April :
see analog chart, page 1. The DJIA Pre Election Year analog model also still
suggests a positive intermediate trend (weeks/months) for the DJIA/S&P 500 :
see analog chart, page 2.
Key Takeaway : on balance, the inter mediate outlook (weeks/months) for
US equities remains positive and weakness to end February should be used as a
buying opportunity.