***** Technical Analysis (August 26)*****
A late rally rescued the market technically speaking as the internals and technical indicators were on the verge of signalling an acceleration of the overall market decline. While the Dow and other indices have held up well, the breadth momentum indicator, Summation Index for the Nasdaq and NYSE, has been weakening since mid-June.
Currently the Nasdaq McClellan Oscillator changed by only 1 to +2 from +1, saving the Summation from turning negative as it appeared to be doing mid-day. The NYSE Oscillator only changed by 3 to +8 from +5, so both are possibly signalling a major move within 4 sessions.
The MACD, DMI, Money Flow (which improved today), and Acc/Dist are positive while the others are basically neutral.
Overall volume was light today so not too much should be made by the rally yet. A follow-through rally tomorrow on heavy or heavier volume could help the bullish case in the short term.
The bond market was stronger today while gold continues to be firm.
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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