***** Technical Analysis (June 5)*****
The market had another chance to decline but fought off selling pressure and ended up very fractionally higher with the Nasdaq once again enjoying relative strength.
The main technical reading today was the McClellan Oscillator once again changing by a small 2 points on both the Nasdaq and NYSE, thereby implying another major move within 4 sessions of 2% on the Dow and 3% on the Nasdaq, which equates to around 180 points on the Dow and 50 points on the Nasdaq.
A plethora of technical indicators are very overbought or extreme, including the Nasdaq RSI which closed at 76.7 and the DMI, and the indexes getting parabolic from their moving averages.
So a pullback or retracement is possible any day now and it could be sharp as well as shallow, but will likely be met with more dip-buyers, many of whom missed much of this rally.
The volume was very heavy for the Nasdaq at 2.5B shares and moderately heavy for the NYSE at 1.7B shares. The TRINs were neutral for the Nasdaq and modestly positive for the NYSE.
It remains very likely for the Dow and S&P 500 to reach 9077 and 1000 respectively and they have a good chance to break out above those levels if the internals hold up. The Nasdaq may yet reach 1700-1750 in June as there is currently no resistance until those levels.
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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