***** Technical Analysis (for March 5)*****
I see some bearish divergences starting to show up, such as the RSI, DMI and ADX, and OBV, but the most important signal is the "double cross" to the downside on the Nasdaq slow stochastics from high levels with the second crossover lower than the first. Unless it crosses over with heavy volume for the index, it is very likely to come back down to at least 25% and most likely near 0% in the next 2-3 weeks, and it could spend some time in a "stochastic drag."
The Nasdaq and NYSE McClellan Oscillator are at -1/+8, respectively. The question is whether the chart formation is a bearish flag or not.
The weekly stochastics are crossed down for the major indices while the dailies are mostly crossed up by a bit, but looking weaker.
The Nasdaq RSI rose to 46 while the MACD is neutral to slightly crossed up, the Williams%R, CCI, Money Flow, Acc/Dist and Aroon are neutral, and the DMI and OBV are negative.
Today's rally was anemic and we shall see if the selling pressure reasserts itself after these brief resetting bounces.
The VIX and VXN are still giving positive readings, while the put/call ratio is giving negative readings.
The major indices are still below their 200/50 dmas and right now they look unlikely to break out above them with authority, thereby implying another downdraft is likely this week or next.
Gold is acting a bit better and is trying to base and keep its long term bullish formation. Bonds are firm and the U.S. dollar is flat for the moment but its next major move is also likely to be down like stocks.
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.
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