*** TA Update:
The market made a fair bullish reversal late into the close but the internals were not impressive. The NYSE a/d was a little better than 1/2 while the Nas a/d was a little worse than that. The TRIN for the NYSE was well below .80 as the u/d vol was 7/9, not impressive either, while the Nas TRIN was about 1.00, neutral.
The market could once again be trying to rally as the Spx fell to an intraday low of 858, thereby testing a recent low of 865 successfully, and it did not reach the prior low of 839.
The McCllelan Oscillators are both a little below the zero line, especially the Nasdaq one, and the NYSE changed very little, thereby possibly signalling a large move within a few days, although that is nothing new as the market is so extremely volatile just about every day.
If the sellers are washed out for now, then we could see a fairly good rally on Friday. Today's action did not qualify as a capitulation however, and the Spx has overhead resistance as their are overhead ST moving averages.
It will take new intense sellers to push this market down as it is extremely oversold again, but the global economic and stock mkt news might provide that, as could U.S. company earnings reports in the next day or two.
Each day the mkt whipsaws participants with wide ranges and high volatility, still in the 70 area.
It might be too soon to say that a good tradeable bottom that can last for 1-3 months has been put in.
And while crude oil rallied modestly today on the expectation of a production cut by OPEC soon, it is a muted reaction and the price of crude could come back down if the market doesn't rally strongly soon, with 60 as a possibility in the next couple of weeks if support at 66 doesn't hold, and longer term, it might even be possible that it will do a round trip to 50 in Nov or Dec.
regards,
drbob |
