***** Technical Analysis (September 25)****
The stock market and gold stocks came under pressure today as profit-taking was serious business today. Gold stocks had stalled out yesterday despite the rise in spot gold and portended a correction while common stocks on the Nasdaq and NYSE have been undergoing a correction since last Friday. The Friday reversal rule would imply that we will rally or at least bounce tomorrow, Friday.
The Nasdaq McClellan Oscillator fell to -44, which is fairly extreme while the NYSE Oscillator could go lower than the -34 reading easily as it sometimes gets to -50 to -75.
The Nasdaq Williams%R worsened to negative while the DMI (ADX) and Acc/Dist worsened to neutral. The MACD and ROC remained neutral while the Money Flow and Aroon remained positive.
The sentiment indicators worsened and are neutral on balance now.
The stochastics are crossed down for the weeklies and dailies, so the momentum is bearish until proven otherwise.
The major indices are nearing important support levels and are due for a bounce whether we open weaker tomorrow or not but the early market internals will signal the direction for Friday.
A positive reversal and/or a strong close by Monday appears necessary to stem the bearish tide 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.
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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