***** Technical Analysis (September 30)****
Yesterday's stock market bounce didn't last long as the path of least resistance is down until proven otherwise, with one day rallies notwithstanding. We probably will make new intra-day lows in the next day or two and then see whether the selling pressure will dissipate or accelerate which will be tipped off by very early market internals.
The Williams%R and Acc/Dist worsened to negative and the Money Flow worsened to neutral after having been positive for many weeks.
The Nasdaq McClellan Oscillator declined to -52 from -46 while the NYSE Oscillator was unchanged at -23, thereby signalling a possible major move within 4 sessions. The Nasdaq Summation is at +383 and needs to stop the bleeding before reaching the zero line, which it could reach in 2 weeks.
The sentiment indicators are neutral on balance as the VIX/VXN MACDs are mixed and the raw readings are staying low at 22.7/32.8, respectively.
Support at Dow 9200 and then 9000, and S&P 500 at 980 are likely to be severely tested in October.
Bonds rallied while gold rose more modestly. The USD has steadied and could bounce a bit before resuming its decline.
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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