***** Technical Analysis (August 27)*****
As mentioned in the intra-day TA Update, it was likely that the market would not turn back down in such a way that the Summation Indexes would turn negative and that they would get modestly positive. The Nasdaq Summation closed at a positive +13 from +2, while the NYSE Summation closed up at +17 from +8.
The question now is how strong the follow-through will be in the days to come. Will the bulls be rewarded with another leg up to new recovery highs on heavier volume or will the bearish divergences finally be vindicated with a trend reversal from a broadening top formation?
The Nasdaq Williams%R and CCI improved to slightly positive while the others remained the same. The RSI rose to 66.5.
The sentiment indicators were slightly improved, particularly the put/call ratio and its MACD, from a contrarian viewpoint.
Gold is getting parabolic once again, and its weekly stochastics are getting too overbought to not see a correction soon.
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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