***** Technical Analysis (for January 22)*****
The Dow fell to 8318 as it nears the 8250 support level and the selling pressure has appeared to dissipate for the time being, thus leaving the door open for a bounce on Thursday. The Nasdaq and NYSE TRINs were only .96 and 1.17, indicating little distribution.
The Nasdaq a/d was 13/20, as the breadth was weak but the up/down volume was 3/4, on light volume of 1.5B shares. The MACD worsened while the Williams%R worsened to negative. The DMI, Money Flow and Acc/Dist remained negative. The CCI and Aroon remained neutral. The RSI was little changed at 42 again.
The Nasdaq McClellan Oscillator fell to -28 and the Summation Index is falling with the gaps increasing at -93. The weekly stochastic is crossed down at 60% and the daily is 23% going down, while the hourly is 2%, so a bounce in the near term is possible.
The NYSE a/d was 12/21, with up/down volume 1/2, on 1.5B shares. The weekly stochastic is now crossed down at 60%, daily is 12% going down, and the hourly is 1%.
The VIX MACD is crossed up, a bearish sign, while the VXN MACD is uncrossed. The put/call ratio rose to .73 but its MACD is negative.
The resistance for the Dow/Nasdaq is at 8600/1400, while support is at 8250/1327, in the short term. In the short-intermediate term of 2 weeks to 2 months, the trend appears to be down, with those support levels likely to be broken.
Gold has broken above 355 and 359, and may be on its way to 370-375 on spot/comex. But gold stocks have lagged and need to reasert their strength or risk a sharp decline when gold tops out and corrects back down around $15-$25.
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks, options, or ETF's as Dr.Bob is not a Registered Investment Advisor. Information and data provided here is believed to be reliable but cannot be guaranteed to be accurate. Always do your own research and due diligence before investing or trading. Remember that Technical Analysis can change by the day, and as such, one day's TA may not be the next day's TA interpretation.
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