***** Technical Analysis (February 25)****
The market's sharp Tuesday decline was followed by a bullish reversal just in the nick of time to prevent, or at least delay a major leg down. The weekly MACD for the Nasdaq remains crossed down and headed downwar as does the stochastic but the daily stochastic is rising now and the MACD is uncrossed, undecided.
The McCllelan Oscillators for the Nasdaq and NYSE turned back up above their zero lines, thereby reversing the Summation as well, so one can expect a follow-through rally early in the week.
However, the Summation Indexes appear to be making lower highs and lower lows, especially for the Nasdaq, and the relative weakness of the Nasdaq bodes badly for the overall health of the market. The Summation is below its zero line for the Nasdaq, and it should be noted that the largest stock declines occur when it is headed down and below that zero line, and it could turn back down in the next week or two.
Energy prices and stocks continued their rallying despite many becoming parabolic from their moving averages. These stochastic pops will eventually see corrections. Some of the lower tier energy stocks are having large percentage moves.
The USD and gold were pretty flat this week but the trend for the USD remains down according to stochastics and MACD and gold may continue its up trend in the next week or two.
The next major move for stocks will likely be down though a technical rally could continue for the next week or two, especially for the Dow while the Nasdaq is lagging badly and the S&P 500 is also lagging the Dow.
Energy stocks continue their strong up trend and are very parabolic but the momentum can make it last longer than would seem likely. One sign of a temporary top is when the lowest tier stocks outperform the top tiers, and that has not occurred yet, though the lower tiers are participating.
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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