***** Technical Analysis (for November 14)*****
Double witching options expiration on Friday may cause some volatility as the near term trend appears to be up. The Nasdaq has a gap below at 1371 and we could have another gap up opening on Friday.
On Thursday the major indices closed at or near their highs of the session, portending some follow-through Friday morning. The Nasdaq led the way again with a 50 point move as it comes within 15 points of its prior high of 1426. The Dow is about 240 points shy of the 8770 resistance level after having broken above the 8500 resistance level. The S&P500 has taken out its 895-900 resistance level to close at 902.
The trading indexes were quite positive today on overall volume that was moderately light on the Nasdaq, 1.8B shares, and on the NYSE, 1.5B shares.
The Nasdaq McClellan Oscillator improved to +30 as did the NYSE Oscillator at +29, but they are a far cry from their prior highs that were over 60.
The Nasdaq MACD improved to neutral while the Williams%R, CCI and Acc/Dist improved to positive readings. The RSI rose to 62.6. Its daily stochastic crossed back up to 94% because of the huge percentage gain today.
The Dow daily stochastic is still crossed down and the weeklies are crossed up.
The sentiment indicators are a little weak as the VIX/VXN have MACDs that are giving negative readings while the put/call ratio declined sharply today to .58, and advisors are still too bullish.
The Dow is rallying towards the highs of 8770 and take out 1426 on the Nasdaq, but the question is for how long, before it peters out. Market internals and technical indicators should give a clue as the latter may be making lower highs.
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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