***** Technical Analysis (September 26)****
The Nasdaq led the way down again on Friday with its McClellan Oscillator falling to a very extreme reading -65 but its 10% index can get more extreme. The NYSE Oscillator reading is "only" -45 and can sometimes reach -60 or so.
The DMI (ADX), CCI and Acc/Dist worsened to negative while the Money Flow is just barely hanging on to its positive reading.
This decline is the most serious one in months and the path of least resistance is down until proven otherwise technically, such as an intra-day reversal with a strong last hour, or an outside day to the upside, or a gap up day that closes near its high. Otherwise, the market is vulnerable to dropping to Dow 9200 and S&P 500 to 980 on Monday or Tuesday, at which time those support levels need to hold or panic selling may set in.
Gold stocks also are likely to fall more early next week while the bond market is looking to rally some more. The energy complex is neutral 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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