***** Technical Analysis (June 27)*****
Not much changed technically on Friday, leaving the market oversold and awaiting another rally. A strong rally by Tuesday would not be surprising as the selling pressure has not been impressive in the last few sessions.
The problem technically is that while the market has held up well during this correction, a failure of the expected rally next week to take out the prior highs on heavy volume and for the Summation Index to turn strongly positive would likely lead to an intermediate term downtrend. If the rally brings the McClellan Oscillator up to the zero line but not substantially above it, it would be another important bearish divergence.
Resistance is at Nasdaq/Dow levels of 1684/9350 and a failure there or below would be quite negative technically. The last rally was on only moderate volume and the next one had better be on heavy volume.
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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