***** Technical Analysis (November 28)****
The market was up very modestly on holiday-shortened trading Friday, which is encouraging for the bulls as we remain above the 50 dmas for the major indices.
The indices are rangebound but currently are nearer their recovery highs than the recent lows and the majority of technical indicators are positive or neutral.
The breadth and breadth momentum indicators are slightly positive and the a/d line has led the way. Also, NYSE specialists are not shorting like the public is which is a longer term positive.
Negative factors are that the overall volume on rally days this week has not been heavy and we shall see if that changes next week, which could be another up week.
Dow 10,000 and Nasdaq 2,000 are nearby and it wouldn't take much to test those levels, and more importantly, bulls need to see those levels be taken out on heavier volume if there is to be another leg up.
The gold market has continued to be strong as it trades very near $400/oz, while the USD is very oversold now after having dropped sharply in the past couple of weeks and is due for a bounce this week. Bonds were weak this past week and longer term the risk is greater for longs in this market.
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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