***** Technical Analysis (July 31)*****
A moderately strong rally lost steam today, Thursday, but the close was very near the open, thereby making this a neutral day technically.
The majority of technical indicators were unchanged with the exception of the DMI which improved to slightly positive from neutral.
The Nasdaq McClellan Oscillator improved to -2 from -10, while the NYSE Oscillator moved by only 1 point for the second day in a row, so a major move may be coming by Tuesday or Wednesday.
The volume picked up today but some of the extra volume came when the market was selling off late in the session. The NYSE remains relatively weak as it had a/d of only 15/17. The S&P 500 technical indications are also relatively weak compared to the Nasdaq and Dow.
The weekly stochastics are very high and going sideways, thereby risking a crossover to the downside and a move downward for stocks. The MACD and ROC remain negative.
The question is whether the mutual fund inflows will power this market upward or whether the technical bearish divergences are portending a major move down.
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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