***** Technical Analysis (October 20)****
Another indecisive day from a technical standpoint today confuses the likely direction of the market. The Nasdaq was up the most today but the move was not impressive even though it closed near the high.
The Nasdaq McClellan Oscillator rose to 0 from -6, while the NYSE Oscillator moved to -5 from -7, thereby giving another major move signal within 4 sessions, for the second time in a row. The 10% indexes are just below their 5% ones for both but above the zero line.
The Nasdaq TRIN closed at a positive .55, with a/d of 18/13, up/down volume 12/5, on moderately light volume of 1.75B shares. The Williams%R improved to positive while the Money Flow worsened to neutral. The RSI rose to 60.9.
The market internals, especially the up/down volume figures early in the session may signal the next major move. If the u/d ratio is extreme in the first half hour on heavy volume, then it could portend the trend for the next couple of weeks and whether we break out above resistance or fall to lower support levels.
Gold rallied sharply while bonds were flat after having rallied earlier in the day. The USD was pretty flat while the energy complex was weak.
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.
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