The bulk of the major equity indices closed lower Thursday with the exceptions of the Nasdaq Composite and Nasdaq 100 posting modest gains. However, we would note the Nasdaq gains came on negative breadth and negative up/down volume.
No important technical events were generated on the charts, leaving the S&P 500 (see below) and Dow Jones Transports in neutral trends as the rest remain positive.
The cumulative advance/decline lines for the All Exchange and Nasdaq are neutral with the NYSE's staying positive.
High "volume at price" (VAP) levels continue to appear supportive.
The stochastic levels remain overbought with the exceptions of the Nasdaq 100 and Transports having flashed "bearish crossover" signals earlier in the week.
The data remains completely neutral, including the one-day McClellan Overbought/Oversold Oscillators for the All Exchange, NYSE and Nasdaq (All Exchange:+15.3 NYSE:+15.05 Nasdaq:+18.39.
The detrended Rydex Ratio (contrary indicator) is also neutral at +0.2 as is the percentage of S&P 500 stocks trading above their 50-day moving averages dipping to 70.7.
Tuesday's AAII Bear/Bull Ratio (contrary indicators) remained bullish at 37.33/29.0 with the Investor's Intelligence Bear/Bull Ratio (contrary indicator) staying neutral at 17.9/50.0.
The Open Insider Buy/Sell Ratio remains neutral at 37.4. We would note it has been declining over the past several days.
Valuation has compressed with the 12-month forward consensus earnings estimate from Bloomberg for the S&P 500 slipping to $171.28 per share, leaving the forward P/E multiple at 17.6x, while the "rule of twenty" finds fair value at 18.2x.
We would note that earnings estimates have been declining over the past two weeks from $172.25.
The 10-year Treasury yield stands at 1.77%.
The earnings yield is 5.7%.
Both the charts and data continue to suggest we maintain our near-term "neutral" outlook for the major equity indices.