***** Technical Analysis (September 4)****
The volume declined from yesterday but remained above recent average volume for the Nasdaq at 1.9B while the NYSE was average at 1.45B.
The Nasdaq McClellan Oscillator was unchanged again at +37 for the third day in a row, thereby signalling a very major move within 4 days possibly. While the direction of any major move is impossible to forecast, the odds may favor the direction being up due to the recent positive momentum and breadth, especially if the volume remains above average on rally days.
The market is very likely to have intra-day dips with bullish reversals at times while other times will see 1-2 day pullbacks. But the trend is going to be up if the volume stays moderately heavy.
The funds have had inflows most of the past several months and as long as that continues, the rally could last a little longer.
The Dow appears to have a bead on 10,000, S&P 500 1050, Nasdaq at least 1900-1950.
Today's volume was somewhat disappointing from a technical standpoint compared to the 3 days in May that had average daily volume of over 2.2B shares. So bulls will want to see volume rise back over 2B shares on the next 1-2 rally days if this rally is to last a few weeks.
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.
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