***** Technical Analysis (week ending April 9)****
The markets were basically flat this past week with most of the internals and technical indicators little changed.
The Nasdaq TRIN closed Friday at .79, a/d of 7/8, up/down volume 9/8, indicating very mild accumulation, on light volume of 1.7B shares. Its a/d line continues to improve. The McClellan Oscillator weakened to +24. Summation is rising and closed at a -68 for the week, and could threaten to turn into positive territory this week.
The Nasdaq monthly stochastic is 90% crossed up for the second week in a row, weekly was little changed to 63% crossed down, daily 85% crossed up, hourly 42% crossed up. The index has risen to above the 50 dma and still has a large gap below near 2020. The MACD, Williams%R, CCI, DMI (ADX), Money Flow and Acc/Dist are positive, while the Aroon is now neutral. The RSI dropped slightly to 58.7 this week.
Favorable seasonality is close to ending (April) and the time period of May to October is typically weak.
The Dow monthly stochastic is 91% crossed up, weekly 73% crossed down, daily 77% crossed up, hourly 25% crossed down. The NYSE McClellan Oscillator turned negative to -16 which turned the Summation Index downward at +450.
The question is whether the current rally is another leg up or just a resetting of the supply/demand balance and technical indicators. We should know in the next week, or two at the latest, by the action of the indices, market internals, and divergences, if any.
The USD remains in a trading range between 87-89 1/2 but , while gold weakened this week before steadying, and silver closed steady as well. Bonds were a little weak while energy complex made a rally late in the week.
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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