***** Technical Analysis Oct. 11)****
The markets were down this week and several technical indicators turned negative.
The Nasdaq monthly stochastic is 73% crossed down, weekly also declined slightly to 52% crossed up, daily declined to 49% crossed down, hourly is 25% crossed up. The McClellan Oscillator declined to -22, and its Summation is at +70.
The Nasdaq MACD, Money Flow and Acc/Dist worsened to negative while the Aroon worsened to neutral, perhaps a harbinger of things to come. The DMI (ADX) remained positive but only slightly so and most of the others are neutral. The RSI dropped to 51 as it is right at the cusp now.
The VIX and VXN MACDs continue to be crossed up and are indicating lower prices may be likely in the short term.
The Dow monthly stochastic worsened to 75 % crossed down, weekly fell sharply to 21% crossed down from 42% last week, daily is 13% crossed down, hourly is at 22% crossed up. The NYSE McClellan Oscillator worsened to -24 and its Summation is now declining at +804. The Dow closed below the psychological support level of 10,000 this week.
The Nasdaq is still operating with the "cross of death" but is above its 50 dma and after surpassing the 200 dma is now below it. As long as the Nasdaq and S&P 500 are outperforming the Dow, the market is unlikely to fall sharply but if the Nasdaq becomes weaker than the Dow, then a mini-crash could occur as the market became overbought and indicators are falling from high levels. Also, a crossover in the weekly stochastic would indicate severe selling pressure and momentum, but that has not occurred yet.
Crude oil went up more this week and appears poised to stay in a very high range. On the charts there is an ascending triangle confirmed, which is bullish for higher prices.
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.
Dr.Bob's mission is to teach Technical Analysis and demonstrate a structured approach to Market Analysis, for position and swingtrading. There are many other TA structures, strategies and systems.
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