***** Technical Analysis (September 9)****
The market didn't have a profit-taking dip yesterday but did so today, and with the weak close, it could follow-through to the downside on Wednesday morning.
The question is whether the current decline is resetting the technical indicators and supply/demand balance or if it is the start of a downturn. Odds favor the former for now.
The Nasdaq McClellan Oscillator dropped to +18 and its NYSE counterpart fell to +28, though the 10% indexes are above the 5% ones and well above the zero lines. The bulls need to see the Oscillators stay above zero during this decline.
The bears need to see more serious technical deterioration than there is occurring now. For example, the MACD, DMI (ADX), Money Flow, CCI, Acc/Dist and OBV are quite positive, as are the stochastics.
While the volume was moderately heavy today on the Nasdaq for a weak day, the up/down volume was not very negative at 3/4, and the TRIN was actually a mildly positive .81, so not too much can be made from Tuesday's weakness.
There may be support near 1840 for the Nasdaq and 1015 for the S&P 500 and 9450 area for the Dow.
Gold has remained firm enough for higher prices in the short term, while bonds are trying to continue rallying.
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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