***** Technical Analysis (July 15)*****
Today's slight decline did not set up bearish divergences apenty enough to warrant a sell signal. It appears that the slow stochastics will rally again to a second top near 100% "k," and at that time we shall see how the overall volume and other technical indications look.
The Nasdaq Money Flow worsened to neutral and let's see how strong it gets during the next rally day or two, as well as how positive the McClellan Oscillators get at that time from its current +8/-30 Nasdaq/NYSE readings. Thus the more speculative stocks are rallying the most which is not a positive sign.
The VIX/VXN MACDs and RSIs are giving warning signals for the bulls and the AAII and Investors Intelligence readings are doing the same.
Overall volume was only 2.0B/1.4B shares for the Nasdaq/NYSE on Monday when the market rallied and today the volume was about the same, so unless it picks up substantially, it will signal trouble down the line for the bulls.
But for now, we can expect a rally Wednesday and a retest of 1776/1015 for the Nasdaq/S&P 500 within a week, with the Dow lagging and trying to retest 9352.
Gold fell sharply today as did bonds. Gold stocks may still be in a bull market while the bond market is less clear, though it is overdue for a retracement rally at least.
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. |
