***** Technical Analysis (July 2)*****
The rally continued today as the Nasdaq is just a few points from its recent highs and appears poised to rise above 1700 towards the next major resistance level of 1750 though it might not get there.
The Dow and S&P 500 are attempting to retest their recent highs of 9352 and 1015 and likely will do so in the next few days, but at that time, unless there is much heavier volume on the NYSE and Nasdaq, there will be bearish divergence for the volume indicator, and possibly others as well. Some of those may be the Summation Index, MACD, RSI, stochastics on the monthlies and weeklies, ROC, DMI (ADX), Money Flow and Acc/Dist.
The sentiment indicators continue to be giving negative signals as they have for most of the past couple of months. Eventually they will be vindicated.
The month of July may see the start of a stock reversal, bond rallies again, and strength in gold, with an acceleration in August and September, unless the technicals can gain strength in the next 1-2 weeks.
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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