*****TA Update(intra-day)*****
The Nasdaq opened without an hourly gap at 3905, which has been the high for the day so far, as it then sold off as low as 3835. The TRIN is 1.40 and was as high as 2, so it is negative, along with the TRIN stochastic 60 min which is still crossed up. The day stochastic is 16% going down in it's intraday reading, but the d is at 60% going down, which is still too far from k to cross yet.
The a/d is 6/11, and up/down volume is 2/5, on overall volume of 780K shares, so volume continues to pick up and could reach 1.7B shares again as were are not at the halfway point of trading yet.
Look for the trend of the TRIN, stochastics and the a/d during the current countertrend timeframe and the last hour is most important.
The likelihood is that at some time today the low of 3835 will be retested, and if the TRIN is at 2 or worse at that point, it will not hold and then the next support is 3794, and then 3700.
If the TRIN can improve to below 1.00 and especially below .80, then the Nasdaq can rally towards the highs of the day at 3905.
The daily charts still seem to be in a short term downtrend, and the oscillators are oversold and can stay oversold a little longer. Incremental buying during pullbacks to support levels during this downtrend might prove beneficial in 3-5 months time if we have the next major bull market at that time.
Dr.Bob's commentaries should not be construed as recommendations to buy or sell stocks. Information is believed to be reliable but cannot be guaranteed. Always do your own research before investing. |
