***** Technical Analysis (September 10)****
The decline from Tuesday followed through early in Wednesday's trading, and along with weakening internals, especially the up/down volume, the major indices closed near their worst levels of the session, especially the Nasdaq.
Technical indicators all weakened, with some turning neutral while the remaining ones staying positive. I couldn't obtain the McClellan Oscillator readings from stockcharts.com tonight, but I believe they fell to neutral or slightly negative readings.
The MACD is on the verge of turning negative as it is now slightly positive.
The S&P 500 support level of 1015 was breached today as was the Nasdaq 1840 level. Based upon the action today, the market will likely experience lower prices in the next few days and should test the confidence of bulls.
The Nasdaq and other indices are all well above their 50/200 day moving averages but did get parabolic last week during their runup. Now the psychological support level of S&P 500 at 1,000 could be important.
The hourly stochastics are near oversold levels and have room for a little more downside action while the dailies have plenty of room to fall. If the up trend is not over yet, then the dailies should turn back up within a few days.
I would expect Friday to be up if Thursday is not, but lower prices should be seen in the next few days.
Gold is holding up while bonds rallied sharply today, giving hope that it might retrace a good amount of the decline from June's highs.
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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