Short-Term (days/weeks) : higher for US Equity Indices
Short-Term (days/weeks) : higher
Key US equity indices were all lower again last week as Daily OB/OS momentum turned up at oversold (S&P 500, Nasdaq Composite, Nasdaq 100) or stalled at modestly oversold (DJIA).
As of the close on Friday, the S&P 500 was testing trend support from the March 2023 low; Daily OB/OS for the S&P 500 was turning up at the oversold level seen at the December 2022 low. The Nasdaq Composite and Nasdaq 100 both turned up at support from the December 2022 low and are now testing short-term resistance; Daily OB/OS for both indices turned up at the fully oversold levels seen at recent price lows. The DJIA is still above next support at the summer low ; DJIA Daily OB/OS momentum is still not yet fully oversold.
Indices turning up at support as Daily OB/OS turn up at oversold looks like a short-term buy signal. Also, the Number of NYSE Stocks with Weekly Money Flow turning positive fell to 6 two weeks ago, suggesting a short-term low next week: see Weekly Charts, attached, page 4.
There is an open gap in the S&P 500 hourly bar chart at 4400; this looks like an area of upside attraction now. Thereafter, 4280 then 4186 are next support (August 2022 high and 38% Fibonacci retracement of the gains from the October 2022 low). See Daily OB/OS Charts, attached.
Intermediate-Term (weeks/months): negative (was neutral)
US intermediate indicators of breadth and momentum were all sharply lower week-on-week at the close on Thursday, including Nasdaq 100, Nasdaq Composite and NYSE Intermediate Term Indicators, Percentage of S&P 500 Groups with Positive Money Flow and the Money Flow of the Average NYSE Stock.
Indicators of breadth and momentum are now all moderately oversold.
Key US equity indices (DJIA, Nasdaq Composite and Nasdaq 100) were mixed week-on-week at the close on Thursday : the DJIA was sharply lower, the Nasdaq Composite was slightly lower and the Nasdaq 100 was slightly higher. Indices are testing minor price support levels. See Weekly Charts, attached.
Sharply lower intermediate indicators of breadth and momentum accompanied by mixed key equity indices looks an intermediate sell signal outlook (weeks/months).
The intermediate uptrend (weeks/months) for US equities is now negative (was neutral).