***** Technical Analysis (October 8)****
The NYSE McClellan Oscillator is still on the major move signal from yesterday, Tuesday, as we await whether it is predictive this time or not. Barring negative news, it may signal a large move up soon.
The market dropped modestly today with mild distribution on the NYSE and more positive action on the Nasdaq. The Nasdaq TRIN was a positive .74, with a/d of 13/19 but u/d volume was 8/9, so there was not severe distribution here, and volume overall was moderately light at 1.8B shares.
The Nasdaq technical indicators were little changed and most are still positive. The McClellan Oscillator dropped to +7 from +19 while most stochastics are positive.
The Nasdaq retested the recent high of 1913 by one point above, and then closed below it at 1893. The index needs to find support soon and then strong market internals will probably kick in to break out above it in the next week if it is indeed forming an ascending triangle.
The NYSE TRIN was a negative 1.34, with a/d of 14/17, up/down volume 4/7, on light volume of 1.2B shares. The McClellan Oscillator dropped to +21 from +33 and its Summation is at +822. The 10% index is above the 5% index here as well as on the Nasdaq.
The MACDs for the VIX/VXN are still crossed down and thereby positive. The put/call ratio is neutral while advisors are very bullish, which is typical of strong up trends and will ultimately signal a major correction but it is not a good timing tool.
The gold stocks were up modestly but off of their intra-day highs while bonds and the USD were little changed, though still probably in downtrends for the longer term.
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.
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