***** Technical Analysis (for April 10)*****
The market traded in a narrow range today and managed to obtain the technical bounce that appeared due as the stochastics were oversold in the short term, and several indicators needed resetting.
The Nasdaq TRIN closed at a positive .57, with a/d of 15/14, up/down volume 16/7, on light volume of 1.25B shares. The MACD, OBV, ROC, and Acc/Dist are negative while the DMI, Money Flow and Aroon are positive though the DMI and Money Flow weakened. The Williams%R improved to neutral and the CCI remained neutral. The RSI rose to 50.2.
The Nasdaq McClellan Oscillator changed by only 1 to +13, so it once again signals a large move within 4 sessions. The 10% index is above the 5% index and the Summation Index rose to -133.
The weekly stochastic is 41% crossed down, daily 53% crossed down and hourly 32% crossed up, implying some more strength is likely in the next day or two but there is not guarantee that the hourlies will get up to 90% before heading down again. The slow and fast stochastics have a triple cross, which has bearish implications.
The NYSE TRIN closed at a neutral .92, with a/d of 18/13, up/down volume 3/2, indicating no strong accumulation here, on light volume of 1.2B shares. The McClellan Oscillator rose to +20.
The Nasdaq gap at 1358 filled yesterday and today we closed above it at 1365. The bulls need a follow through to at least 1430 in order to prevent a trend reversal back down.
The Dow thus far has a double top at 8520-8522 and needs to take that out next week on heavier volume to reassert bullish momentum, otherwise, a major decline will likely ensue.
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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