***** Technical Analysis (November 18)****
The Nasdaq closed at its session lows as selling accelerated in the last hour, taking the index to close below its 50 dma, while the other indices also tested their 50 dma.
The Nasdaq McClellan Oscillator is nearing extreme levels, now at -46, as the -50 to -60 are extreme readings where at least a technical bounce is expected. The 10% index is also nearing extreme levels. The RSI fell to 41 while the daily stochastics are starting to get oversold at 26% crossed down.
The NYSE and Dow are faring slightly better than the Nasdaq but are also weak and all indices need to find support or risk another 5% drop.
The gold market is strong and is now testing the psychological resistance of $400/oz as the USD falls, helping the precious metal. Bonds are steady for now but is in a downtrend until proven otherwise.
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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