***** Technical Analysis (September 19)****
Stocks closed modestly lower on Friday but off their intra-day lows, as sellers couldn't accelerate matters. The market averages are overbought in the near term and after breaking out above resistance levels last week, they are entitled to a "pause to refresh." After some profit-taking, the bulls will need to show strong market internals to reverse back up, or else we can see a pullback for 2-4 weeks.
The MACD got a little more positive while the rate of change remains negative and the OBV is neutral now. Other technical indicators are mostly positive.
The Nasdaq McClelllan Oscillator dropped to +12 from +16, and its 10% component is above the 5% one and above the zero line. The Oscillator could spend some time below the zero line and then turn back up.
The NYSE Oscillator is at +24, down from +27 but its 10% index is above the 5% one and the zero line.
The sentiment indicators are mixed as advisors and investors are too bullish but have been so during the past 3 months while the market has risen, and the VIX and VXN are slightly positive now as the MACD has crossed back down.
Gold rallied moderately today but off of its intra-day highs so it may have reached a near term top, and bonds continued its retracement rally, needing a little more to reach 50% retracement.
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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