***** Technical Analysis (November 12)****
While a technical bounce was not unexpected after several days of weakness and a mildly oversold condition occurring, the market instead rallied sharply, especially the Nasdaq. Thus, the MACD improved to neutral and the McClellan Oscillator rose sharply to 0/+2 for the Nasdaq/NYSE, respectively.
The stochastics also crossed up for the weeklies, dailies, and hourlies, which could set the stage for a choppy rally in the short term. The TRINs were a very positive .34/.60, for the Nasdaq/NYSE, which is indicative of fairly strong accumulation as the up/down volume figures were 8/1 and 11/2.
The 50 dma is now at 1896 while the 10 dma is at 1949, which should provide support for the Nasdaq when profit-taking sets in. Now the index needs to follow-through on Thursday to convince sellers to take a break with dip-buyers taking center stage tomorrow as well as they did today.
Gold rallied sharply and could take out resistance at $394/oz while bonds steadied a bit today but risk remains for longs there.
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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