***** Technical Analysis (May 6)****
Not much changed last week technically except that most indicators and chart patterns became more positive. The exceptions are the ADX and Money Flow which have not yet turned positive.
The bullish divergences of two weeks ago proved out this time as the market reversed up despite many support levels being broken.
The indicators are not yet extremely overbought but the real test now is whether they can stay positive and on heavier volume rally days and better money flow indications.
If the market rallies on light volume or bearish divergences show up, then the rally won't have legs.
Spot crude rallied above 50 again and has taken turns above and below that critical level. The next support level is 46 and then 41, though the latter probably won't be reached. Energy stocks still have relative strength in the longer term.
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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