***** Technical Analysis (May 25)****
The stock market became technically negative two weeks ago but may have hit bottom on Wednesday mid-session as a late rally could be the turning point.
The Nas Weekly CCI just got very, very extreme, and the Nas Weekly Summation is now approaching -600 and has done so in just two weeks of selling off:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iUd20!Ua12,26,9]&pref=G
Breadth and breadth momentum indicators, such as the McClellan Oscillator, 10% Index, and now the Summation Index, have reached extremely oversold levels:
stockcharts.com
If the market internals are mostly positive the next few days, then many of the technical indicators will turn positive next week, and initially this rally will be choppy, leading to a stronger one later.
It will take a large increase in selling pressure to invalidate this likely scenario, and turn the market trend back down. More likely, we have seen a sharp, but brief correction, and the resource stocks will lead the market back up again.
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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