Technical Market Report For Saturday, April 24

Technical market report for Saturday, April 24, 2021

The good news is that last week saw the secondaries outperform the blue chips. 

The Negatives

Although new highs have remained at comfortably high levels, they have not been expanding to confirm the price increases.

The first chart covers the past six months, showing the S&P 500 (SPX) in red and a 10% trend (19-day EMA) of NYSE new highs (NY NH) in green. Dashed vertical lines have been drawn on the first trading day of each month. The NY NH failed to confirm recent index highs.

The next chart is similar to the first one, except it shows the Nasdaq composite (OTC) in blue and the OTC NH in green. The information has been calculated with Nasdaq data. The OTC NH continued to weaken.

The next chart covers the past six months, showing the OTC in blue and a 10% trend (19-day EMA) of Nasdaq new lows (OTC NL) in brown. The OTC NL has been plotted on an inverted Y axis, so decreasing numbers of new lows move the indicator upward (up is good).

The OTC NL took a little dip last week, but recovered to its level of the previous week, 72; an uncomfortably high number.

The Positives

The secondaries outperformed the blue chips last week for a pleasant change. 

The next chart is similar to the previous one, except it shows the SPX in red and the NY NL in blue. The information has been calculated with NYSE data. I consider this one a positive because the level of the indicator (27) is not threatening.

The next chart covers the past six months, showing the SPX in red, and a 40% trend (four-day EMA) of NYSE new highs divided by new highs + new lows (NY HL Ratio) in blue. Dashed horizontal lines have been drawn at 10% levels for the indicator; the line is solid at the 50%, neutral level.

The NY HL Ratio took a little dip last week, but finished the week at a very strong at 92%.

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