***** Technical Analysis (December 5)****
On Thursday the Nasdaq McClellan Oscillator turned negative and it followed through to the downside on Friday as breadth was negative again. The NYSE Oscillator is at +1 and in danger of turning negative as well.
The a/d lines and new highs/new lows are still in up trends while the majority of technical indicators are neutral but quite mixed.
The Dow, S&P 500 and NYSE composite are relatively stronger than the Nasdaq and have been for several weeks, with the S&P 500 having made a new recovery high while the others came very close to doing so.
Generally large institutions favor the benchmark S&P 500 when they accumulate stock and they have seemed to be doing so lately but not on heavy volume.
Thus far the recent weakness in stocks may be another profit-taking minor correction, and if the selling does not accelerate and become more broad, we should see another rally starting sometime this week or next week at the latest.
Dow 9800 and Nasdaq 1900 need to hold for now and ultimately Dow 9500 and Nasdaq 1800 should provide support, barring major negative news.
Gold continues to march upwards above $400/oz as the USD continues to be weak. Bonds are in a trading range with the 10 year note yield between 4.1% on the low end and 4.6% on the high end, and it may ultimately break out above 4.6%.
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.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL. |
