***** Technical Analysis (Dec. 17)****
In a nutshell, the technicals of the market are appearing to signal a complex topping formation, with some distribution finally occurring in December. The quality of the next rally needs to be much better than that of the last recent rally in order to invalidate the slackening of bullish momentum seen this week.
Recent highs may be tested for the S&P 500 while the Dow and Nasdaq may not do so or may not test their year highs. Last Friday had heavy volume with distributive signs.
The indices are still well above their 50 and 100 day moving averages while the McClellan Oscillator is slightly negative and has lost momentum in the past few weeks.
The USD was stable while gold has been trending down the past couple of weeks. Gold still has risk as the USD could technically bounce a bit more. Crude oil fell to 40 1/2 and then rallied to 46 in the past week or so, and has stochastics and macd crossed up now on the dailies, a positive development. A near term dip, if contained above 44, could provide a positive technical signal that the worst is over.
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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