***** Technical Analysis (Sept 28)****
This is an new TA update.
On Thursday the major indices were slightly up on moderate volume.
The breadth was mildly positive while the NYSE u/d vol was even and the Nasdaq u/d vol was moderately positive.
The daily stochastics are crossed up as are the MACD's.
The Dow reached the all-time high area of 11,722 once again and surpassed it intra-day, and the next target resistance level is the all-time intra-day high of 11,750.
The McClellan Oscillators were little change at +8/+12.
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On the weekly NASI charts that include CCI and MACD, it shows that these are overbought but could allow for more upside action if strong buying volume can come in:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
On the daily SPX charts, the CCI and MACD appear toppy:
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Below charts:
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A rally is in process right now, as this market has whipsawed market participants.
The S&P500 has now broken out above resistance at 1328 on a closing basis and is primed to test the 1345-1350 area, while the DJIA is primed to test its all-time high near 11,750.
Caution may be warranged as there are bearish divergences and a rising wedge formation possibly forming for the Dow and S&P500.
Be sure to use the advantages of the "top-down" approach, a paradigm in technical trading. The bottoms-up approach refers to the idea that market timing is not used and that the goal is to select strong companies from a fundamental standpoint to buy and hold.
The "top-down" approach refers the the idea that one first ascertains the trend of the market, the strongest or weakest sectors for that trend, and the strongest or weakest stocks within those sectors, to trade, all with the trend.
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.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL.
I can be reached at drbob512@msn.com. |
