***** Technical Analysis (September 2)****
The market indices exploded today as the Dow and S&P 500 closed above their prior recovery highs of 9500/1015, to join the Nasdaq, which had made new highs last week.
The volume picked up as well as the Nasdaq had 1.8B shares and the NYSE had 1.4B shares changing hands. The RSI rose to 75.5 and the McClellan Oscillator rose to +37/+56, so both are getting very extreme, implying a correction is imminent unless overall volume picks up even more during intra-day rallies.
The Dow could approach 10,000 while the S&P 500 and Nasdaq could rally towards 1050/1900 respectively in the days to come after this breakout.
The bullish case was supported by today's action and higher prices are likely as the momentum and breadth is quite positive.
The bond market was sharply lower today and further declines could increase the 10 year note rate to or close to 5%, at which point stocks could be affected negatively.
Gold has been trading at a high level as have gold stocks, and all 3 major investment vehicles (stocks, bonds, gold) are very risky now for the short or intermediate term.
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.
Dr.Bob no longer hosts Stocktimers meetings on Sunday nights at AOL. |
