*****TA Update(intraday)*****
The Nasdaq opened lower at 4081 (hour gap) which has been the high for the day as it dropped to 3988, which is near the prior resistance area of 3982, as prior resistance areas tend to become support levels. Support at 4013 and 4004 has been breached, and further support is at 3920, which was tested in both directions previously.
TRIN for the Nasdaq is at 1.55 (high was 2.25), quite negative, with a/d at 1/2, up/down vol at 1/3 on overall moderately high volume of 740K shares at 9:25 am PST, which extrapolates out to around 1.5-1.6B shares for the day.
TRIN stochastic on hourlies and 1/2 hourly are crossed over to the upside, negative readings that would take a few hours to cross down and turn positive if not a little longer.
The countertrend period (aka "dead zone") usually results in very short term price movements up and down, each failing to hold, until the last hour or so, at which time the next major move occurs. Depending on several factors, such as the TRIN, TRIN stochastic, a/d, up/down volume, and index stochastic signals, there are definite clues to the major intraday price movements.
While the TRIN is quite negative for the Nasdaq, it does not feel like climactic selling.
The question is whether it is enough to reset the overbought indicators to provide a basis for the next rally to hold. Look for support to be tested if the market weakens and then it will be important for the aforementioned indicators to hold up. If the market rallies in the dead zone, then the indicators should improve dramatically in order to be successful and to not drop off towards the close. Some resistance is at the 4100 area and more at 4190.
Dr.Bob's commentaries should not be construed as recommendations to buy or sell stocks. Always do your own research before investing. |
