***** Technical Analysis (Oct 28)****
The market technicals have been whipsawing in the past week or two after having been bearish for several weeks.
The breadth momentum indicators have been ST neutral while the IT has remained bearish, and historically they get more oversold before a tradeable bottom occurs for position trading.
See below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iUd20!Ua12,26,9]&pref=G
While the sharp rally today was impressive, the rallies have each failed in the past month or two, and there has been no capitulation yet. Usually the market needs a selling climax or a double bottom to mark a bottom.
Next week is more likely to be weak but in either case, the risk to longs is that the next rally will also fail, leading to a signficant decline, and energy stocks are not immune to this.
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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