***** Technical Analysis (for October 29)*****
The market rallied late in the session to pare its losses and improve the internals to ending slightly negative, as dip-buyers got active when the indices were down more sharply.
The Nasdaq TRIN closed at a negative 2.42 but it had been as high as 5. The a/d was 14/17, with up/down volume1/3, on 1.6B shares. The RSI dropped to 56.0. The MACD, Acc/Dist, and Aroon remain very positive while the Williams%R, and DMI (ADX) are positive but weakening, and the CCI and Money Flow worsened to neutral.
The Nasdaq McClellan Oscillator dropped to +40 but its 10% index remains very positive above zero and the 5% index. The weekly stochastic is 41% crossed up while the daily is 80% crossed down now and the hourly is 32% going up, so this signal is mixed.
The NYSE TRIN closed at a negative 1.70, with a/d of 7/9, up/down volume 1/2, on light volume of 1.4B shares. The Dow weekly stochastic is 45% crossed up, daily 86% going sideways, and the hourly is 52% going up.
The VIX/VXN rose slightly to 36.8/52.4. The put/call ratio was .74 and its 50 dma rose to .88. The advisors are 38% bullish vs. 35% bearish.
The market has lost some bullish momentum but could get it back as indicated by the late rally today. Thus, we need to see the market internals tomorrow and the close because the technical indicators are looking toppy and need an infusion of buyers to maintain their positive readings. In the longer run, the market is still vulnerable to another round of serious selling and a retest of the October 9 lows is more probable than not.
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.
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