***** Technical Analysis (Oct 2)****
This is an new TA update.
On Monday the major indices were slightly down on moderate volume.
The breadth and u/d vol were down for the NYSE and more so for the Nasdaq, as the u/d vol was almost 1/2 for the NYSE and was slightly worse than 1/2 for the Nasdaq.
The daily stochastics are crossed down now while the daily MACD's are mixed. In the past couple of months, it has crossed right back up after crossing down as the dips were bought by Wall Street. Will it keep happenning?
The mega-cap stocks are doing the best as evidenced by the relative strength of the Dow Industrials and the S&P100. Several bearish divergences have developed, such as the relative weakness of the Nasdaq, Russell 2K, and Transports.
The McClellan Oscillators were mildly worse and have turned slightly negative. The Summation Indexes may have formed a top as they have been moving mostly sideways despite the Dow having risen to test the all-time closing high recently.
stockcharts.com
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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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. |
