***** Technical Analysis (for March 18)*****
The market had a more modest gain today after stronger rallies in the past few days, and the gain was on lighter volume. The next test will be what the volume trend will be in the next rally day or two, and if dips are bought quickly on declining days for reversals.
The Nasdaq McClellan Oscillator rose again to +31, with the 10% index above the the 5%, while the Summation Index is at -567. The weekly stochastic is trying to cross up but hasn't quite done so at 51% while the daily is at 99% again.
The Nasdaq TRIN closed at a positive .49, with a/d of 17/14, up/down volume 22/9, on 1.6B shares. The MACD became more positive while the Williams%R, DMI, CCI, Money Flow and Acc/Dist remained positive. The Aroon remained neutral and the OBV remained negative. The RSI rose to 65. The index remains above the 200 and 50 day moving averages.
The NYSE McClellan Oscillator rose to +30 and its 10% index is above the zero line. The Dow weekly stochastic is also trying to cross up at 47%, and the next few days should give a signal.
The sentiment indicators remain mostly neutral or mixed, with the put/call ratio MACD being the only indication of a definite signal, which happens to be negative.
The Nasdaq has resistance at 1420 and the Dow has it at 8250, then 8600 which it may not reach. It would not be surprising to see some weakness Wednesday due to profit-taking and then another rally Thursday and/or Friday to reach at least 8250 and 1420, but unless it is accompanied by heavier volume, it may mark the end of this technical rally within the bear market.
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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