***** Technical Analysis (September 8)****
Instead of a profit-taking dip, the market rallied on moderate volume on Monday. New recovery highs were made on all major indices.
Friday's decline saw little change in the technical indicators and while the indices are getting parabolic from their moving averages, the positive momentum remains intact and not likely to reverse yet. There is usually a double top reversal formation or at least an unwinding of the technical indicators.
The McClellan Oscillators are at +35/+50, and are experiencing the equivalent to a "stochastic pop" for the oscillators, i.e. staying at overbought levels longer than average.
The stochastics are enjoying a stochastic pop and there may be resetting dips rather than a reversal in the near or short term.
The Dow may yet test the 10,000 level and the Nasdaq may approach the 2,000 level before a reversal of some magnitude and duration.
Now there may be rotation of various sectors in the market, with some high relative strength sectors taking turns with some that have lagged, but the growth stocks, China sector, internet, and semiconductor stocks may continue to outperform.
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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