***** Technical Analysis (June 18)*****
The Nasdaq and NYSE McClellan Oscillators finally crossed back down into negative territory, at -5/-19, respectively, thereby the Summation Indexes are going down. The TRINs have been faring better during some weak days recently and the a/d line and new highs/new lows are continuing to be positive, so any correction or decline now may be limited.
The market has come up quite far and fast in the past 3 1/2 months so a 5-7% correction from the recent highs would not be surprising or necessarily indicative of a trend reversal.
The Nasdaq ROC remains negative while most of the others are positive. The TRIN was .45, with a/d of 1/1, up/down volume 7/3, indicating modest accumulation of selected issues, on heavy volume of 2.1B shares.
The NYSE TRIN was .79, with a negative a/d of 13/20, but u/d vol was 6/7, on 1.45B shares, indicating mild, not strong distribution.
If the Dow can hold support above 9000 during this correction, then it should be able to retest and probably take out the recent high. Same holds true for the S&P 500 and Nasdaq. We shall see if the top has been put in or if the bullish momentum hasn't dissipated just yet.
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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