***** Technical Analysis (for March 19)*****
The technical indicators are little changed from yesterday except the weekly stochastics are now crossed up for the Dow and just about crossed up for the Nasdaq.
The Nasdaq McClellan Oscillator did not budge from +31 today, thus signalling a large move within 4 sessions. The NYSE Oscillator only moved by one point, also implying a large move within 4 sessions. Sometimes that move happens a lot sooner than 4 sessions. The market has had such strong momentum lately that it makes it hard to predict in which direction that large move will occur.
The Nasdaq TRIN was a slightly negative 1.29, with a/d of 16/15, up/down volume 7/9, on moderately light volume of 1.7B shares. The MACD is very positive as are most of the other indicators such as the CCI and DMI. They may be getting too extreme though. The Aroon remains neutral while the OBV is negative..
The NYSE TRIN closed at a positive .65, with a/d of 17/14, up/down volume 9/5, on light volume of 1.4B shares.
The VIX MACD is crossed down while the VXN is crossed up, which is an interesting difference. The put/call ratio MACD is giving a negative reading.
The Nasdaq remains above its 200 and 50 day moving averages while the Dow and S&P 500 are below their 200 dmas but above their 50 dmas.
The Dow has surpassed resistance of 8250 and could rally towards 8600, the next resistance level while the Nasdaq has some resistance at 1420.
There are not many negative divergences yet, implying that we should have more strength in the days to come, as we continue this technical rally within a bear market, with the help of interpretations of geopolitical events.
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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