***** Technical Analysis (Nov 11)****
The daily stochastics and Summation Indexes continue to give positive short term signals currently.
The overall market reached oversold conditions a couple of weeks ago and have since turned up, and are starting to get overbought in the short term.
Usually solid bottoms are marked by extremely oversold levels on intermediate term technical indicators but not always.
Recently they reached moderately oversold conditions but not extremely so.
The current uptrend may continue in a choppy way and then we shall see if the market needs to decline once again to obtain a double bottom or a more extreme oversold level, before a solid intermediate term rally can occur.
While there are some who believe a new multi-year bear market has commenced, the breadth and breadth momentum indicators have not signalled that yet, nor have the longer term indicators.
Certainly some caution is warranted as the recent bottom is suspect as is this current rally. And it is unlikely that we will see a powerful intermediate term rally without another downdraft first. So as we rally, the risks increase for longs.
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. There are many other TA structures, strategies and systems.
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