***** TA Update *****
The markets were mixed again today as the Nasdaq u/d volume was 5/3 on a/d of 1/1, while the NYSE a/d and u/d vol were both about 3/4.
The action since last Thursday's sharp rally has been a bit troubling for longs because today is the 3rd day since and one would expect a bullish follow through day by today or tomorrow if the trend is to remain up.
The a/d line is showing a bearish divergence:
stockcharts.com
It shows that the a/d for the Nasdaq and NYSE have not made higher highs during the time that the Dow, SPX, and Nasdaq have done so with their averages. If this doesn't reverse very soon, the market could suffer a sizeable correction.
The Nasdaq and NYSE McClellan Oscillators are slightly negative and have been whipsawing lately instead of becoming a steady positive reading which one would expect from the recent series of highs on several indices.
The volume on rallies has not been very heavy as well.
On the positive side, the Nasdaq index and technology stocks in general have had relative strength lately. If that reverses, the market will likely decline, so watch that carefully.
We have made nominal new highs for the Dow and SPX while the Nasdaq has made larger new recovery highs recently.
Bulls want to see a stronger market as it appears to look tired right now.
Oil stocks have lagged the performance of crude oil futures very recently and that should be watched as well, as oil stocks have boosted the SPX lately.
Tomorrow's action is important to either confirm the uptrend, or to signal the possibility of a reversal.
regards,
drbob |
