U.S. Markets closed

Downshifting Our Outlook as Yellow Flags Appear on the Charts

Downshifting Our Outlook as Yellow Flags Appear on the Charts

All of the major equity indices closed lower Wednesday with negative internals on the NYSE and Nasdaq as overall trading volumes declined from those of the prior session. The charts saw some technical damage appear as the Nasdaq Composite, S&P MidCap 400, Russell 2000 and Value Line Arithmetic Index closed below their short-term uptrend lines, turning said trends to neutral from positive. Meanwhile, the Dow Jones Transports (see below) did an about face as it closed below near-term support after the prior significant two-day rally.