***** Technical Analysis (Sept 21)****
This is an new TA update.
On Monday the major indices rallied strongly, as market internals were especially strong on the Nasdaq.
The daily stochastics crossed back up as did most of the MACD's.
The McClellan Oscillators rose to just under 0 and could turn positive with one more rally day.
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On the weekly NASI charts that include CCI and MACD, it shows that these are overbought but could allow for more upside action if strong buying can come in:
stockcharts.com[m,a]waclyyay[pc30!c20][vc60][iud20!ua12,26,9]
On the daily SPX charts, the CCI and MACD appear toppy:
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Below these charts show bearish divergences on the ROC and CCI, as they did not reach prior high levels during the highs of this week:
stockcharts.com
A rally is in process right now, as this market has whipsawed market participants.
Watch for the S&P500 resistance at 1328 while support is at 1290.
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.
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. |
