***** Technical Analysis (July 22)*****
Prior to today's announcement of the death of Saddam's two sons, the market wasn't following through on the upside, but it probably was going to do that anyway later today or tomorrow.
The problem for bulls is that the rally thus far has been unimpressive to the technical indicators, with the MACD negative and the Summation coming down along with the 10% index below the 5% one.
Only the Aroon is now positive and the others are neutral except the aforementioned MACD. The Nasdaq RSI rose to 55.2.
We are probably having a resetting rally that will fail and lead to an intermediate decline.
The Nasdaq Summation Index may be forming a head and shoulders, which if proven out, will imply a large decline. The NYSE Summation is even weaker.
Sentiment is still too bullish, which has bearish implications.
Gold is firmer than thought but could still suffer a continuation of its correction but downside risk may be minor now. Bonds remain weak and need to start rallying.
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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