***** Technical Analysis (Sept 21)****
This is an new TA update.
On Thursday the market declined on moderately heavy volume of 2.6B/2.0B shares for the NYSE/Nasdaq.
The NYSE a/d was 2/3, u/d vol 19/32, while on the Nasdaq the a/d was 5/9, and u/d vol was 3/7.
The daily stochastics are crossed down now as they have been whipsawing from being a stochastic pop. The MACD's are mixed on the dailies.
The Nasdaq McClellan Oscillator dropped to +2 while the NYSE Osc reading fell below the zero line to -6. How many more times can these readings fall just below zero or to just above zero and then rally again?
The market is at another crossroads, where it could reverse back up and break out above the recent highs, such as S&P500 near 1328, or break down and starting a downtrend.
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. |
