***** Technical Analysis (week ending February 27)****
Most of the financial markets were relatively stable this week.
The Dow, S&P 500 and Nasdaq were basically flat while the technical improved late in the week from worse readings from last week and early this week.
The McClellan Oscillators need one more moderate rally day to turn positive after having been extremely oversold, along with its 10% component, in the prior week.
The Dow and blue chip stocks have held up better than technologys/growth stocks in the past couple of months and the S&P 500 index as well as the Dow is just a few points below their recovery highs. The Nasdaq has further to travel to reach its recovery highs.
The selling pressure has dissipated for the moment, thus improving the odds for a rally this week.
The USD had rallied strongly and then flattened out this week and needs to close above 88 to confirm and extend its technical rally; otherwise, it could retest 84.6-85 in March.
Gold and silver have been weak for a few weeks now but have not broken down badly from a longer term perspective and could find some support in the $388-$394 level this week as a precursor to another rally above $400. Gold and silver stocks demonstrated some bullish divergences as they did not make new lows when spot/futures prices did.
Crude oil rallied to and above $35, which was thought to be almost inevitable. The $37-$38 level would not be surprising in the next 4-8 weeks, though it may need to consolidate in the $34-$36 level for the next couple of weeks first.
Bonds remain locked in a narrow range between 4-4.2% for the 10 year notes.
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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