***** Technical Analysis (September 3)****
Stocks powered ahead today on heavier volume of 2.3B/1.6B shares on the Nasdaq/NYSE, respectively, thereby confirming the breakout above resistance levels yesterday and thus implying higher prices in the short term. Of course, intra-day and 1-2 day dips should occur but the bulls have had control of the trend since last week when the McClellan Oscillators turned decidedly positive.
There appears to be rotation as money flowed (temporarily?) out of China-related and semiconductor stocks, which have been two of the strongest sectors, and into blue chip technologys stocks such as Microsoft and Cisco.
The Nasdaq RSI is at a very high 76 and the McClellan Oscillators are also quite high, with the Nasdaq unchanged at +37, which signals a possible major move in just a few days.
The OBV and Aroon improved to positive so while a dip or pullback is imminent, the major indices could trade up to or close to Dow 10,000 and S&P 500 1050 and Nasdaq 1900-2000.
The market can work its way higher during the time that the technical indicators make double tops or unwind from lofty levels.
The gold stocks are level (though they now can reach $400/oz as they have broken above $375 intra-day) while bonds are weak again during the past two sessions. The 10 year note rate has a chance to reach 5% in the next 1-2 months, hurting bond prices badly.
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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