***** Technical Analysis (July 29)****
Technically the market has lost a little positivity in the past couple of weeks even though some of the indices have moved higher. This does not mean that stocks are going to necessarily have a large move down but that a correction is likely in the offing this coming week.
From an intermediate term standpoint, the market is nearing a top of some kind if the breadth momentum indicators are to be believed.
For example, the NASI Weekly chart is below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iUd20!Ua12,26,9]&pref=G
It should not be viewed on its own but along with others, it is implying that a top could occur in the next 2-3 weeks.
The Nasdaq could still hit my target mentioned a few months as could the Dow and S&P 500, but the trouble is that those targets are not far away now.
Spot crude should test the 62/barrel level in the few weeks and it would not surprise me to see it in the mid-60's, which has been my forecast from earlier this year.
Natural gas has been an even stronger performer and that may continue.
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. There are many other TA structures, strategies and systems.
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