***** Technical Analysis (May 12)*****
The market indicators keep resetting on the dips and pullbacks before rallying back up strongly like what occurred yesterday and then followed through today with another sharp up day.
The Dow is acting like it "wants" to not only test 8800 but also the 9077 area in May. The Nasdaq has been even stronger, having taken out resistance at 1425 much earlier and now is threatening to test the 1570-1600 area. Even the S&P 500 is nearing its prior high of 968.
For today, Monday, the Nasdaq TRIN closed at .36, with a/d of 20/11, up/down volume 5/1, on moderate volume of 1.8B shares. The RSI rose to 69.7, the MACD, Williams%R, DMI, CCI, Money Flow, Acc/Dist and Aroon remain positive. Only the ROC indicates negative divergence.
The Nasdaq McClellan Oscillator rose to +35 from +28, with its 10% index getting extreme again. The weekly stochastic is 99% crossed up, daily 98% crossed up, and hourly 94%.
The NYSE TRIN closed at a very positive .39, with a/d of 23/10, up/down 11/2, on light volume of 1.35B shares. The McClellan Oscillator rose to +44 from +35.
There is no sign of a sharp decline in sight and the positive momentum is not offset by a lot of bearish divergences. So the short term can still see higher prices after brief dips. Perhaps we will see a 9077 retest after the 8800 retest.
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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