***** Technical Analysis (August 18)*****
The market's rally continued today and actually picked up steam, improving the technical indicators.
The Nasdaq TRIN closed at an extremely positive .29, with a/d of 2/1, up/down volume 7/1, indicating strong accumulation, on light volume of 1.5B shares.
The Nasdaq MACD, Williams%R, CCI, Money Flow and Acc/Dist improved to positive, while the ROC and OBV improved to neutral. Only the Aroon remained negative., and the RSI rose to 61.
The Nasdaq McClellan Oscillator rose to +20 after a "major move signal" two times in a week. But today's 37 point move does not qualify for a major move as it did not reach 3%.
The NYSE TRIN closed at a positive .65, with a/d of 2/1, up/down volume 7/2, on light volume of 1.1B shares. The NYSE McClellan Oscillator rose to +28.
The VIX/VXN had improved the last couple of days and today are giving a more positive signal as their MACDs are crossed down again.
The resistance levels to be retested are within striking distance for the S&P 500 (1015 level) and the Nasdaq (1776 level) this week. The Dow has surpassed its prior recovery top of 9361 and now may trade at or near 9550.
If overall volume picks up, then this rally could have legs, while if it stays light, then it could peter out within a week or two.
Gold has stalled and is entitled to a correction while bonds rallied modestly today and has a lot to prove technically.
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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