This is a confusing market that is being juiced with plenty of liquidity from the fed. Below are a few charts as we tread the volatility the last few weeks.
The TRIN index above is a breadth indicator that compares advancing and declining stock issues and trading volume. With today's move higher we are very overbought. I expect some consolidation in the next couple of days to work that indicator off it's overbought readings.
The NYSE Summation Index above has given a sell signal as it has crossed through the moving average. With the volatility as it has been the last few weeks, we can potentially move above that moving average in the next week or two.
After yesterday's and today's move higher, I would have expected the put/call ratio to also elevate much higher also to complacency levels. The level is just above the neutral line where there is not much edge either way as to the high complacency or panic in the market.
Bottom Line: Today was a strong day for the markets led by some improved economic data. I expect we see new market highs in the coming weeks with continued better data, and plenty of liquidity via the fed. Thank you for reading.
No comments:
Post a Comment