***** Technical Analysis (for February 19)*****
The markets were modestly lower today on light volume as the major indices enjoyed a late rally to pare their losses. The Nasdaq did not fill its gap at 1310 and it has another at 1281, and had an inside day instead. Several of the indicators point to the possibility of more upside action in the days ahead, though it will likely be choppy.
The Dow has resistance at 8150 and 8250 while the Nasdaq has it at 1363 (50 dma) and 1380. S&P 500 has resistance at 865. There is little support right now.
The Nasdaq TRIN closed at a mildly negative 1.36, with a/d of 12/19, up/down volume of 7/16, indicating no strong distribution, on very light volume of 1.2B shares. The McClellan Oscillator fell a little to -4 and its 10% index dropped to just below its 5% one. Stochastics were little changed.
The MACD, DMI, and Acc/Dist remained positive while the Money Flow improved to neutral and the Williams%R worsened to neutral. The OBV worsened to negative. The RSI dropped a bit to 49.9, acting indecisive.
The NYSE TRIN closed at a negative 1.40, with a/d of 3/5, up/down volume 3/7, on very light volume of 1.1B shares. The McClellan Oscillator fell to -11.
The market does not seem finished quite yet with this technical rally and we could see a resumption of the rally on Thursday or Friday. But if it is indeed a technical rally, then it should be followed by a significant down move.
Gold rallied after having had 3 weeks of severe weakness from its high of $389/oz for spot. We shall see if it can re-confirm its bull market status by rallying in the weeks to come, though it may stay in consolidation mode for a bit longer.
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.
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