***** Technical Analysis (Sept 13)****
This is an new TA update.
On Thursday the market was mixed as the Nasdaq was up a point and its u/d vol was 10/7, but other indices were down mildly and the NYSE u/d vol was 4/7. Breadth was 2/3 and 3/4 on the NYSE/Nasdaq, and volume was moderate at 2.3B/1.9B.
Daily stochastics are mixed as they are crossed up for most of the dailies, except the NYSE Composite, which has been lagging as a broader measure, and the 30/60 minute stochastics are mostly crossed down now, so there may be a ST pullback now.
The McClellan Oscillators and Summation Indexes declined to +27/+8, for the Nasdaq/NYSE.
The Nasdaq has gaps below at around 2120 and 2065, which are likely to get filled sometime in the future.
But the bullish momentum, especially for the Nasdaq, led by chip and retailing stocks, could last a little longer.
Bears want to see an ascending triangle on the SPX daily charts along with unfavorable seasonality of Sept/Oct, while bulls see the recent uptrend from the June lows.
Oil and gold futures and stocks may still have more downside action as the downtrend has not yet reversed on the charts, despite being very oversold.
Tomorrow is quadruple witching Friday, which can be volatile.
Below is a link to the DMI(ADX), slow stochastics and StochRSI:
stockcharts.com
See the indicators below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
Be sure to use the advantages of the "top-down" approach, a paradigm in technical trading. The bottoms-up approach refers to the idea that market timing is not used and that the goal is to select strong companies from a fundamental standpoint to buy and hold.
The "top-down" approach refers the the idea that one first ascertains the trend of the market, the strongest or weakest sectors for that trend, and the strongest or weakest stocks within those sectors, to trade, all with the trend.
For breadth momentum charts, see the chart link below and modify it:
stockcharts.com
(change this chart to $compx, weekly charts, and change the lower settings to slow stochastics, macd, and Williams%R to get the best chart)
The Nas weekly Summation-related charts are below:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
The Nasdaq McClellan Oscillator and Summation Indexes are linked below:
stockcharts.com
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. There are many other TA structures, strategies and systems.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL.
I can be reached at drbob512@msn.com. |
