All of the major equity indices closed higher Friday with positive internals on lighter trading volume.
More positive technical events were achieved as the S&P 500, DJIA, Nasdaq Composite and Nasdaq 100 made new closing all-time highs.
The Dow Jones Transports (see below) also closed above resistance, turning its short-term trend to positive from neutral.
All of the indices are in short-term uptrends and above their 50-day moving averages while the cumulative advance/decline lines are positive on the All Exchange and NYSE with the Nasdaq's remaining neutral.
High "volume at price" (VAP) levels are now supportive on the Transports and Value Line Arithmetic Index.
The data remains largely neutral in spite of the recent gains.
The one-day McClellan Overbought/Oversold Oscillators are all neutral (All Exchange:+21.96 NYSE:+28.44 Nasdaq:+18.72).
The detrended Rydex Ratio (contrary indicator) at +0.4 is neutral as is the Open Insider Buy/sell Ratio (79.8).
Last Tuesday's AAII Bear/Bull Ratio (contrary indicator) at 32.0/30.33 is neutral as well. We continue to view this lack of enthusiasm on the part of the crowd as a positive.
Still, the percentage of S&P 500 stocks above their 50-day moving averages (83.4) has entered bearish territory but we do not view it as an important "timing" indicator. More negative data would be required.
The 12-month forward consensus earnings estimate from Bloomberg for the S&P 500 dipped to $173.89 per share. This leaves the forward P/E multiple at a 17.3x, versus the "rule of twenty" fair value multiple of 17.9x. As such, it is less compelling than previously viewed, but not negative.
The 10-year Treasury yield is 2.11%.
The earnings yield stands at 5.77%.
We have yet to see enough shift in the charts and data to warrant a change in our current "neutral/positive" outlook for the major equity indices at this time.