***** Technical Analysis (July 21)*****
After the recent weakness and oversold technical indicators in the short term, one would expect a rally very soon, though it may just be a retracement one. But the interesting thing is that sentiment remains very bullish overall and several indicators can get more negative in the intermediate term.
The MACD has turned negative and the RSI is at the neutral 50 level. The Nasdaq is below its 10 dma but above its 50 dma of 1625.
It appears we are in a grinding down stage which will have lower highs and lower lows in the charts and technical indicators such as the Summation.
The a/d line may be forming a double top for the NYSE and AMEX while the Nasdaq one has made higher highs but looks tired now.
The bulls will need to start a strong rally that lasts several days in a row on heavier volume or else all we will get will be fibo retracement rallies, and then stage by stage, an acceleration of the decline.
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.
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