***** Technical Analysis (July 10)*****
The market technicals weakened a bit on Thursday, with the Nasdaq McClellan Oscillator back down to -1 from +21 yesterday and the NYSE Osc reading down to -35 from -11 as the NYSE has lagged the Nasdaq recently.
The S&P 500 has had some distribution in the 1002-1015 level and the Dow has had trouble getting back to 9352 while the Nasdaq powered ahead well above recent resistance levels prior to today's action.
The MACD remains positive while the Williams%R and Money Flow weakened to neutral.
It will be interesting to see if the decline continues this week or if we are about to see a bounce. There is a good chance for a substantial rally in July in the indices, especially the Nasdaq, while the technicals show bearish divergences. Most leaders have not broken down yet, implying another rally could start within a few days as there is more likelihood of a downtrend accelerating a good deal after the top is made.
The a/d line has held up well as has the new highs/new lows, but the Summation Indexes are telling a different story as it has been weakening. When the a/d line reverses trend, then it will confirm the Summation.
Gold is not moving much while bonds remain weak and can't seem to get a good rally going yet. The next rally in bonds and stocks may be a precursor to a major downdraft.
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.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL. |
