***** Technical Analysis (September 23)****
Sellers were finally able to accelerate the selling pressure today as all major indices fell sharply, especially the Nasdaq. A major correction would be a fall of about 10%, or 950 points on the Dow from just under the 9700 level reached last week.
The MACD worsened to negative while the Williams%R weakened to neutral and most of the other indicators remained positive. The RSI fell to 52 from 64.
The Nasdaq and NYSE McClellan Oscillators dropped to -20 and -17 and thus turned the Summations down. Now we shall see how long they will continue to go downward.
The volume picked up to 2.2B/1.5B on the Nasdaq/NYSE, respectively, and if we see another heavy volume down day tomorrow, it could portend a longer decline. If the next day's weakness is on light volume or if we get a stronger close, then the market may go sideways for a while rather than down substantially.
The Dow may find support at 9250 and Nasdaq at 1800-1820 while the S&P 500 can drop a bit below 1,000 (perhaps to 980 support) and still be in an uptrend.
The gold stocks didn't rally as much as spot gold and need to pick up in the next day or two or risk a bearish divergence leading to a correction. Bonds have rallied and the 10 year note may reach the 4% level in the next couple of weeks. Crude oil rallied and may have found a bottom for now.
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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