***** Technical Analysis (for April 2)*****
While the overall volume was light and there appears to be some negative divergences, today's rally does set the stage for more upside action in the next day or two along with profit-taking declines. The Nasdaq has a gap below at 1358 and filled the gap at 1367 and will probably fill the 1403 gap.
The "war news" apparently is still affecting the markets more than I thought as the economic data was not positive but traders were heartened by a lack of negative war news and some good news.
The Nasdaq TRIN closed at .49, with a/d of 22/9, up/down volume 5/1, indicating strong accumulation on light volume of 1.64B shares. The MACD improved to neutral and the DMI improved to positive from negative. The Money Flow and Acc/Dist remain positive while the RSI rose sharply to 58.
The Nasdaq McClellan Oscillator rose sharply to +37 with its 10% index rising above the zero line now. The stochastics are mostly crossed up.
The NYSE TRIN closed at a very positive .39, with a/d of 23/9, up/down volume 13/2, on light volume of 1.56B shares, thereby throwing into question the huge runup today in terms of lasting power. The weekly and daily stochastics crossed back up, and we shall see if there is follow through or negative divergences.
Sentiment indicators are mixed, though the VIX and VXN MACDs are giving positive readings.
The Dow closed above 8250 resistance and may try to retest 8522. The trading range seems intact despite last week's weakened technicals.
The Nasdaq has some resistance at about 1420 after the 1403 gap resistance, which wouldn't be hard to take out as we closed at 1396.
Recently the Dow has been a buy under 7900 and a sell above 8250.
But today's very positive action may only bode slightly higher prices prior to another downdraft, barring extremely good war news. Actually, that might only delay the inevitable.
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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