***** Technical Analysis (May 29)*****
Mixed signals once again occurred today as a late drop pared the gains for the Nasdaq and turned the Dow and S&P 500 down a fraction percentage-wise.
The Nasdaq McClellan Oscillator once again changed by just a bit to +25 from +23 while the NYSE Oscillator fell 7 to +18. So another large move is expected.
The overall volume picked up today as the Nasdaq had 2.2B shares turning over accompanied by a TRIN of .68 but the NYSE had a TRIN of 1.77 on 1.7B shares.
Today's action was indicative of distribution on the NYSE and mild accumulation on the Nasdaq.
On the daily charts, the Dow has a good chance of retesting 9043-9077 and S&P 500 of 965. But some divergences are occurring for this overbought market.
The Nasdaq rate of change remains negative but the MACD is neutral and the OBV improved to neutral. The other major technical indicators remain positive and the RSI rose to 68.5.
Sentiment indicators remain mildly to very negative on balance. Advisors are particularly too bullish.
The daily stochastics are crossed up while the hourlies are crossed down but the positive momentum is not as strong as at other times.
The volume has improved but the market has had some weak closes lately and may have trouble breaking out above 9077 on the Dow. Bulls believe that the rally can continue through the rest of the year while others are more skeptical from a technical or fundamental view.
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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