Assessing The Market's Technical Trend

Assessing The Market's Technical Trend

The Technical Trend Indicator (TTI) registered -6 on Wednesday. Industrials, transports, utilities and technology stocks closed lower on the day. There were fewer advancing stocks than declining stocks (A/D) on the NYSE. The largest market cap stocks (BMBI) closed lower on the day while the majority of stocks with the highest daily volume (MASI) on the NYSE also closed lower on the day. Bond yields closed lower on the day, positively impacting the TTI. The TTI registered 2,898 versus its long-term moving average of 2,852, +46 above trend.

There were no real changes in the technical indicators. Relative strength indicators (RSI) for US and EU markets have moved into positive territory above 50%. MACD momentum readings are still negative for all markets. The S&P 500 has edged above the long-term MA (50WMA) for the first time in months but the S&P 100 closed back below the 50WMA yesterday. The tech sector, S&P 500 and 100 indices in the US are showing readings with the majority of stocks trading above their 200DMA, but no confirmation yet from the broader NYSE index. The NYSE A/D Line is approaching the highs set in December while the TTI has broken out to new all-time highs.

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