*****TA Update(intraday)*****
The Nasdaq gap lower at the opening, followed by weakness to the 3905 area, with the TRIN rising to more than 1.20 but then improved to where it now is .60 and the 30/60 min stochastics are crossed over to the downside, a bullish indication for the very near term. A/D is negative at 4/5 and up/down vol is 4/3 on 773,000 shares, which is slightly more than yesterday and so we may reach 1.5B shares, which would be a positive is we can rally at the close, but a weak close on higher volume would be a significant negative.
As long as the TRIN stays below .80 in the countertrend, the Nasdaq can prevent a large decline, and if it rallies to below .40 or at least .50, it can rally to retest 3982 and possibly 4010.
The important question is whether this Nasdaq action is a high level consolidation from which to make higher highs, or is a high level distribution pattern. The closes of the next day or two could tell the story.
For today, follow the TRIN and TRIN stochastic, 30/60 min ones to see if they stay crossed or reverse their crossover. A TRIN between .80 and 1.00 is a danger area when the a/d and overall volume in the Nasdaq is weak, and if it were to get over 1.00, a decline could accelerate as prices fall faster than they rise.
But for now, the TRIN is in positive territory as is it's stochastics.
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks. Always do your own research before investing. |
