***** Technical Analysis (July 18)*****
Friday's rally did not help the technical indicators to become more bullish. The Nasdaq MACD actually worsened to negative, having crossed over, while the majority of other indicators are neutral to slightly positive.
The McClellan Oscillators improved but are still negative and are probably just resetting because they, especially the NYSE one, got too extremely negative. The 10% indexes are below their 5% ones, so they remain negative.
The likely scenarios are either for a sideways trading range or a slow grind back down for a few months. There are some bearish divergences and a few more will cement the fate for this market.
The next rally has a lot to prove and a bounce early this week is likely to be a precursor to more weakness.
Gold has a little more time to be weak apparently but then could rally starting in August while bonds are due for more of a bounce than seen in the past week.
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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