***** Technical Analysis (December 1)****
Late last week (Wednesday and Friday) the majority of technical indicators improved to positive, such as the McClellan Oscillators, stochastics, MACDs, RSIs, DMI (ADX), Money Flows, on light volume but today the moderate rally was on heavier volume.
A follow-through heavy volume rally day would be welcome by technicians who are bullish though we've seen choppiness throughout most of this rally that started in March. Some indicators are near term overbought, such as the hourly stochastic, increasing the odds for a pullback early Tuesday, and if the internals are weak, then it could last the entire session.
If the internals, especially the up/down volume, are strong, then any dip will be bought and we should close higher by the end of the session.
Bonds remain under pressure and any technical bounces will probably not be lasting as this market may have started a bear market from June's highs.
The USD was weak again and stays oversold but could bounce any day now. Gold closed above $400/oz, and Tuesday's action could portend if there will be a pullback now or a strong breakout to the upside.
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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