***** Technical Analysis (April 22)****
The market was very choppy this past week as the market sold off on Wednesday but then rallied sharply on Thursday and then dropped on Friday.
In the near term, the market is neutral with the intermediate term indicators still negative, so there could be a bounce early this coming week to reset the indicators some more and then it should fail and lead to another downdraft.
It would take severe selling to prevent this bounce and to cause a decline early in the week, which is not as likely.
The weekly stochastics are still crossed down and not ready to cross back up yet.
The McClellan Oscillator has been whipsawing above and below its neutral zero line. On Wednesday it was below, on Thursday above, and then back down below it on Friday. The Summation Index is quite low on the Nasdaq and moderately low on the NYSE. My other Summation indicator is nearing a possible low but not quite there yet.
Energy prices and energy stocks perked up this week but the energy stocks could weaken again with the overall market, but the worst may be over for that sector as we are heading into the driving season.
The USD has weakened lately and if that continues, it could help energy and gold prices.
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. There are many other TA structures, strategies and systems.
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