***** Technical Analysis (June 2)****
The stock market became technically negative three weeks ago and then made a bottom of sorts a week ago 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, had reached extremely oversold levels:
stockcharts.com
The 10% index has rallied along with the McClellan Oscillator since the recent bottom.
Currently the market is looking constructive as the market internals have been mostly positive in the last week and half and high relative strength stocks/sectors are once again leading as generals.
While the action is likely to be choppy with some down days, it will take very severe selling pressure to cause an intermediate downtrend and the odds for that timeframe favor the bulls, especially those in the favored sectors.
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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