***** Technical Analysis (March 18)****
The markets were down this week but the market reversed late Friday to prevent a route.
The Summation Indexes are still headed downward while the stochastics and MACD are weak as well. The question now is whether the bears can accelerate the selling pressure or if the internals will improve enough to warrant a rally.
The energy stocks started to recover this week from their mild correction of the prior two weeks. Now the action will be very choppy, up and down, in all likelihood, for the next week or two, as profit-takers and dip-buyers will trade-off, but the longer term remains positive.
Rising interest rates have added to the selling pressure that the high oil prices have provided, so now there is a double whammy for the market other than energy and basic materials sectors.
The markets are not oversold enough to say that a bottom has been reached yet, but could get there in the next 3-6 weeks unless we get a larger technical rally in which case it will take a few months before a firmer bottom is put in.
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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