***** Technical Analysis (September 5)****
Technically little changed due to Friday's modest decline as the profit-taking was due anyway as the "Friday opposite trend" rule was in force from the week's earlier gains.
The market remains overbought so more weakness could occur in the early part of next week, which could be resetting of the supply/demand and technical indicators.
The positive momentum is probably too strong for the market to have a substantial reversal now, and higher prices are likely in the next 1-2 weeks at a minimum.
The Summation Indexes could rally back up to their prior highs in June, which could take a few weeks to accomplish.
We haven't gotten the major move as signalled by the McClellan Oscillators lack of signficant change last week, and it could be coming up by mid-week, Tuesday to Thursday. Even without it, the market could work its way up.
Bonds rallied sharply on the news of disappointing jobless claims and continued high unemployment. Gold held firm.
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. |
