***** Technical Analysis (May 30)****
The stock market became technically negative three weeks ago and then made a bottom of sorts last Wednesday intraday.
The Nas Weekly CCI just got very, very extreme, and the Nas Weekly Summation is now approaching -600 to -800:
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
The 10% index may make a double bottom for the final bottom.
The McClellan Oscillator, as of today, Tuesday, had just turned barely positive at above the zero line last Friday but has turned back down today.
The market has weakened today rather sharply and may be setting up another bottom this week. The question is whether this decline is a major correction or the start of a bear market. Thus far, it appears to me that it is the former, especially for resource stocks, as they had gotten too parabolic recently.
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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