***** Technical Analysis (March 4)****
The inability of the sellers to accelerate matters when the market declines has led to dip-buyers and a high-level trading range, with the chance of a major breakout to the upside for several indices.
There has been lost momentum as indicated by the Summation Indexes but sometimes the market can rally more than is expected when breadth weakens if there are blue chip market leaders.
The daily stochastic is headed upward now while some long term indications are neutral to bearish, so barring a major negative event, the market can probably move up higher in choppy fashion.
The market has reacted surprisingly well and held up to higher energy prices recently, indicating that that is interpreted as a strong demand for energy from strong economies, primarily China and the US.
The USD and bond yields have not hurt the market either recently and neither did the strong labor report or other inflationary-related data.
When the market reacts all right or positive to or in light of seemingly negative news, it can be a precursor to higher prices.
Most of the moneys this year may still be made from the energy sector, however, even though a Spring correction in this very parabolic sector, is likely, because it is the only strong growth industry.
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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