***** Technical Analysis (August 7)*****
The McClellan Oscillators were very extreme yesterday and improved slightly today as a technical bounce is probably underway.
The Aroon turned negative today, joining the majority of other technical indicators. Typically when the Aroon changes, the market will not go in that direction until after a corrective move. In other words, the Aroon signal is that it worsened to negative after having been positive for a few months, and the signal is after the first move down and the market is ready for a reset rally, but after that the Aroon signal will be vindicated.
The put/call ratio rose to 1.02, the VIX dropped to 21.9, and the hourly stochastics are crossed up or going up, so these imply a rally is imminent. In addition, because the week has been down, Friday's action will probably be in the opposite direction (i.e. up).
But the technical damage has been substantial and the pressure is downward for the weeks ahead after some indicators reset.
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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