***** Technical Analysis (for October 21)*****
The Dow blasted above 8400 resistance and the Nasdaq is very near its resistance level of 1320 and could also break above it, but on light volume.
The Nasdaq TRIN closed at a very positive .50, with a/d of 3/2, up/down volume 11/4, on 1.6B shares. The RSI rose to 60.5 while the MACD, Williams%R, CCI, DMI (ADX), and Acc/Dist remained positive. The Aroon and Money Flow improved to positive. But the Williams%R may be topping out soon as it forms a double top.
The Nasdaq McCllelan Oscillator rose to +57 and its 10% index rose above the zero line. The monthly stochastic crossed up at 11% while the weekly is 39% crossed up and the daily is 98%.
The NYSE TRIN was an extremely positive .33, with a/d of 19/12, up/down volume 4/1, on only 1.4B shares. The McClellan Oscillator rose to +29.
The VIX/VXN dropped to 38.9/52.3, respectively as their MACDs remain crossed down, which is indicating the beginnings of being negative. The put/call ratio rose to .73 but its MACD is getting to negative territory. The Investors Intelligence bullish advisors are only 28% while the bearish ones are 43%, a positive reading from a contrarian view.
The markets can make new recovery highs while forming a topping formation, and that is what the Dow, S&P 500 and Nasdaq may be starting to do. But in the meantime, stocks can make choppy upward movements, which is good for fast swing traders.
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks, options, or index vehicles. 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 or forecast.
Dr.Bob's mission is to teach Technical Analysis and demonstrate a structured approach to Market Analysis, for position, swing, and daytrading.
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