***** Technical Analysis (for December 11)*****
The major indices were slightly higher with fair internals but on light volume. The selling pressure has dissipated for the past two sessions but may reappear on Thursday or Friday.
The Dow traded above 8600 resistance but closed below it while the S&P 500 has been lagging of late and was up less than a point. The Nasdaq has not reached 1420 resistance this week and its McClellan Oscillator is relatively weak compared to the NYSE one.
For Wednesday, the Nasdaq TRIN closed at a neutral .90, with a/d of 1/1 after having been positive most of the session, up/down volume 7/6 after having been better, on light volume of 1.4B shares. The MACD remains quite negative while the Williams%R and Acc/Dist improved slightly but are still negative, and the DMI (ADX) improved to neutral. The CCI remained neutral while the Money Flow and Aroon remained positive. The RSI rose to 49.3 and the ROC remains negative.
The Nasdaq McClellan Oscillator rose to -16 from -19 but its 105 index is still below the 5?% index and below the zero line. The daily stochastic is 35% crossed and going down, while the hourly is 65% going up and the 30 minute stochastic is crossed down from high levels.
The NYSE TRIN closed at a negative 1.23, with a/d of 17/14, but up/down volume was negative at 4/5, indicating mild distribution, on light volume of 1.25B shares. The McClellan Oscillator rose to +5.
The sentiment indicators are still bearish, with the VIX and VXN MACDs crossed up. Put/call ratio is low at .76 and its MACD is negative.
The market may continue its bounce Thursday morning, but by the close or Friday, it will probably weaken once again. While news on Thursday could boost prices, the technical break last week can not easily be reversed.
Dr.Bob's commentaries are not to be construed as recommendations to buy or sell stocks, options, or index vehicles. 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 or forecast.
Dr.Bob's mission is to teach Technical Analysis and demonstrate a structured approach to Market Analysis, for position, swing, and daytrading.
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