***** Technical Analysis (May 22)*****
The market rallied modestly today on moderate volume of 1.8B/1.45B shares for the Nasdaq/NYSE, respectively. Sellers have not been able to take charge after Monday's sharp decline but most of the technical indicators have weakened and some are indicating negative divergences.
The Nasdaq TRIN closed at a positive .47, with a/d of 19/12, up/down volume of 3/1, indicating moderate accumulation. The MACD and ROC remain negative while the DMI, Money Flow, Acc/Dist and Aroon are positive. The Williams%R and CCI are neutral as is the OBV. The RSI rose to 56.5.
The Nasdaq McClellan Oscillator rose to -4 from -15 and its 10% index remains above zero though it is below the 5% index. The weekly stochastic is 40% crossed up and the daily is 84% crossed up.
The NYSE TRIN closed at a positive .56, with a/d of 2/1, up/down volume 11/3. The McClellan Oscillator turned back up above the zero line at +5 from -5. The 10% index is a bit above the 5% index.
The market is attempting to rally again to the prior levels near Dow 8750 and Nasdaq 1553 but the indicators are not very impressive now.
If the Nasdaq and Dow cannot break through 8800 and 1553 during this rally over the next few days, it could result in a major decline due to the failure and negative divergences.
While pre-holiday trading may boost the market tomorrow, Friday, next week might see a reversal.
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.
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