*****TA Update(intra-day)*****
The weaker than expected PPI numbers this morning boosted the markets, with the Nasdaq opening up with a strong day gap at 3963 and trading as high as 3984, just above the aforementioned resistance area of 3982. The TRIN is now a very bullish .35, with a/d at 21/14, up/down volume 55/12, on overall volume that is strong at 700K shares, which extrapolates out to about 1.7B shares, which would be in the area that could sustain a rally.
The day gap at 3893 probably won't fill today due to the very strong TRIN and a/d, and though the market is in the countertrend or dead zone in which it will have some dips, those dips should hold and we could rally late in the day to close above 3982/4000. If the TRIN stays under .50, the above scenario should take place, but if it is between .50 and .70 after such a strong opening, then it may stall out a bit. If it rises above 1.00, then it should fill the gap.
This strong rally probably takes out my expected trading range of 3700 to 3982, and I have to raise my high end back to the 4289 area. As I have recently been saying, incremental buying on dips and pullbacks below 3800 will probably be profitable 3-5 months out, but so far there has only been a brief pullback below 3800.
The Nasdaq daily stochastic only briefly dipped below 25% intra-day, and we shall see if Wednesday's close at 25% was oversold enough or if we need to have some more choppiness. Our TA indicators such as stochastics and Williams%R got to oversold levels, and unless the market gets very worried about a slowing economy and weaker earnings, we are not likely to break support levels.
We are in triple witching week, so more volatility both ways can still occur. So far, we have found support at 3794, which is encouraging.
Dr.Bob's commentaries should not be construed as recommendations to buy or sell stocks. Always do your own research before investing. |
