***** Technical Analysis (Oct 21)****
The stock market was mixed last week with the technical indicators also becoming mixed as the ST bearish momentum has waned somewhat with the McClellan Oscillators pretty neutral while the IT breadth momentum indicator is still not extremely oversold enough to signal a likely bottom.
Another technical rally could occur this week as the choppy decline zig-zags for a bit longer, although the length of any rally is unknown.
If history is any indication, then the IT indicators need to get more extremly oversold before a bottom is achieved.
We could see either a spike bottom, with or without a selling climax, or a double bottom.
In any case, there is still some risk for the overall market, including the strong relative strength sectors such as energy stocks, though they could bottom first.
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. |
