***** Technical Analysis (November 3)****
The market managed a moderate rally today with the Dow, S&P 500, and Nasdaq at new recovery highs Dow 9858 vs. 9848, SPX 1059 vs. 1053, Nasdaq 1967 vs. 1966. The Nasdaq led the way today with the strongest performance, up 35 points.
The overall volume was heavy on the Nasdaq at 2.1B shares, but moderate at the NYSE at 1.35B shares.
The Nasdaq TRIN closed at a positive but not extreme .70, a/d of 2/1, up/down volume 3/1. The RSI rose to 62.8 and the MACD finally turned positive as did the Williams%R and CCI. The Aroon improved to positive as well after having fallen to neutral for one day.
Importantly the Nasdaq McClellan Oscillator rose to +15 from zero and the 10% index is now above the 5% one. All of the stochastic timeframes are crossed up, and the slow stochastics allow for more upside before getting extreme enough for a pullback, and we may get a stochastic pop if the u/d vol figures are very positive tomorrow.
The NYSE McClellan Oscillator rose to +18 and is still on the major move signal. The 10% index is above the 5% one now.
The sentiment indicators remain mixed with the specialists betting on a rally.
Dow 10,000, S&P 500 at 1080 and Nasdaq 2,000 appear likely in the next week as a two day rally could provide those levels. Ultimately this quarter a Dow 10,300 and Nasdaq 2098 would not be out of the question, but first things first, as bulls need to see follow through tomorrow, Tuesday, at least in the market internals if not the indexes.
The gold market experienced a sharp decline today as the risk-reward ratio had become too risky for new long positions but the bull market is intact. Bonds fell sharply as the 10 year bond has now apparently completed its 50% retracement rally and could fall to test the 103 level again on the futures contracts after having reached a high of 123 in June.
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.
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