***** Technical Analysis (October 31)****
I skipped the TA Update for October 30, which was a real yawner, as was the one for today, Friday, October 31, no "trick or treat."
The technical indicators were little changed today, as the Dow and S&P 500 were up very modestly and the Nasdaq unchanged.
After rallying earlier in the week, the "Friday reversal rule" was not proven out by a decline today nor was it severely disproven either by the modest gains.
The McCllelan Oscillators changed by less than 5 points for the Nasdaq and NYSE, so their is the major move signal within 4 sessions. The Nasdaq reading dropped to 0 from +3, and the NYSE up to +3 from +2.
The TRINs were .81/1.06 for the Nasdaq/NYSE, respectively. The MACD improved is just a hair from neutral and one rally day could turn it positive.
Volume was moderate on the exchanges and the breadth was slightly negative for the Nasdaq and slightly positive for the NYSE.
While some more weakness or at least a stalling of the rally is possible for early this coming week, the indices were able to reverse after falling to or near their 50 dmas, and could find a way to rally to new recovery highs above 9848/1053/1966 soon.
Gold stocks have rallied in the past couple of weeks but may not have the best risk-reward ratio now, and conservative investors may consider waiting for a pullback. Bonds were up mildly but probably will confirm the trend reversal that occurred after the June highs, in the next week or two by falling inversely with rates rising.
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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