***** Technical Analysis (September 16)****
There wasn't much confirmation yesterday of the MACD turning down from the other indicators so there was a good chance for a rally starting today or tomorrow. The major indices are set to take out their prior resistance highs of 9609/1032/1888, especially the Nasdaq, and the question is how strong the follow-through will be.
The MACD improved to neutral and another positive day will turn it up again while the Nasdaq McClellan Oscillator rose to +14 from -1, turning the Summation back up. The only negative sign is from the rate of change which is indicating a bearish divergence.
The sentiment indicators remain mixed, with the VIX/VXN at very low levels, which is reflective of an up trend but its MACDs are not as positive, so it should portend a major correction in the weeks ahead after more rally.
The gold market is weakening a bit and may be due for a correction now while the bond market is trading flat mostly since the huge decline in the past 1-2 months.
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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