***** Technical Analysis (for April 14)*****
A very light volume rally today is not impressive technically even though it improved some of the indicators, such as the McClellan Oscillator, 200 day moving averages, RSI, and MACD (which improved to neutral). The Nasdaq/NYSE volume was only 1.2B/1.1B shares, respectively.
The Nasdaq TRIN closed at a very positive .48, with a/d of 2/1, up/down volume 9/2, while the RSI rose to 54.6. The CCI, Williams%R, CCI and Money Flow remained neutral while the Acc/Dist remained negative and the DMI and Aroon positive.
The McClellan Oscillator rose to +24 on the Nasdaq and its 10% index rose again. The Summation Index rose to -100 as it tries to challenge the zero level.
The NYSE TRIN closed at a very positive .42 with a/d of 3/1, up/down volume 6/1. The McClellan Oscillator rose to +36.
The VIX closed at a level reached at two prior low levels at 26.5, and remains crossed down. The VXN has made lower lows, now at 39.5. Both are considered positive signs in a bull market but if we are still in a bear market, these low levels may mean that most of the rally is over.
The Dow needs to rise on heavier volume if it is to break out above 8522 successfully and the Nasdaq needs to close above 1430 to avoid a failure. We shall see how the market acts in terms of breadth momentum and overall volume, as bearish divergences are still existing.
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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