***** Technical Analysis (June 11)*****
The Dow powered ahead in late trading, rising above 9077 by a wide margin, to 9183, very near the intra-day high last week. The S&P 500 rose to within 3 points of 1,000 and appears poised to rally above that psychological resistance level. The Nasdaq rose modestly today to 1646 and may retest its recent high of 1684 in the next few days.
A brief pullback could occur after an early rise tomorrow morning but the momentum is decidedly bullish in the short to intermediate term. But the overall volume has now been under 2B shares for the Nasdaq for the last 3 sessions so the bulls need to see it get above 2B and preferably above 2.2B shares within the next couple of days for this rally to not give way to a significant drop.
The blue chips rallied more than many of the technology stocks today as evidenced by the NYSE McClellan Oscillator rising to +26 while the Nasdaq Oscillator is at +14, up from +11, a change of 4 or less, thereby signalling a major move within 4 sessions.
The Dow could reach 9400 now and the Nasdaq has 1700-1750 in its sights despite the overbought condition in the market now as the breadth and breadth momentum remains very positive. Market internals during the sessions will signal the likely direction for the close and dip-buyers appear to still be present.
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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