***** Technical Analysis (August 22)*****
The market suffered action on Friday that was almost an outside day to the downside, which has short term bearish implications from a technical standpoint, thus, the market could follow-through on the reversal day by being weak on Monday.
The Nasdaq didn't quite take out the low of Thursday but it certainly did have an extreme reversal day (having reached a high of 1812)as did all of the indices, including the S&P 500 which rallied to 1011, just four points from the prior recovery high before closing down 10 points for the session.
The Nasdaq TRIN closed at a positive .62 as the a/d was 1/2 but the up/down volume was only 7/10, indicating there was no strong distribution. Volume was moderately light at 1.7B shares. The OBV worsened to negative and the Williams%R and Money Flow worsened to neutral while the MACD, DMI (ADX), CCI and Acc/Dist remained positive.
The Nasdaq McClellan Oscillator weakened to +12 from +35 and needs to hold above zero as a reversal here would turn the Summation Index back down, which would have quite bearish implications.
The NYSE TRIN closed at a negative 1.32, with a/d of 5/11, up/down volume 1/3, indicating mild distribution, on light volume of 1.3B shares. The McClellan Oscillator fell sharply as well to +18 from +44.
The sentiment indicators remain mixed with the VIX/VXN RSIs and MACDs positive while the put/call ratio and advisors reading are negative.
Gold stocks were down while bonds rallied almost 100 basis points. The USD has rallied towards the 100 level, as it is trying to reverse the downtrend.
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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