***** Technical Analysis (May 30)*****
The Dow, S&P 500 and Nasdaq rallied sharply, with the S&P 500 closing within two points of 965 resistance. With the Nasdaq having taken out its resistance by a wide margin, the S&P 500 has a high probability of taking out 965 by a wide margin next week and the Dow could retest 9077 as well. There may be a dip early next week first as technical indicators are extreme.
The Nasdaq RSI closed at a lofty 71.5 and the DMI's +DI is extreme in its positive reading, while the MACD and OBV turned positive, the latter two being bullish signals along with the heavy volume on the Nasdaq and NYSE.
The Nasdaq TRIN closed at a positive .74, with a/d of 11/5, up/down volume 8/3, on 2.3B shares, the highest volume in several months. The ROC is still negative while all others are positive.
The Nasdaq McClellan Oscillator rose to +37 and the Summation Index made a new recovery high at 1313. The stochastics are enjoying a stochastic "pop."
The NYSE TRIN closed at a neutral .95, with a/d of 25/7, up/down volume 26/7, on heavy volume of 1.7B shares, as these stocks lagged the Nasdaq stocks.
The NYSE McClellan Oscillator rose to +36 and its 10% index is well above the 5% one.
The market is acting like it could have a major move upwards after a near term breather because the volume has picked up substantially.
Watch the market internals each day to provide the clues as to whether dips will be bought and if rallies will end strongly at the close.
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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