WALL STREET CRAPS STOCK MARKET STRATEGY MAY 19, 2018
STOCK MARKET STRATEGY FOR MAY 19, 2018: The internal indicators of the stock market have been trending down the last few days, chewing up time, and possibly setting itself up for another trading bottom as early as late next week. Another plausible scenario is for next week to produce a bounce with a more stable bottom about two weeks out. In any event, there is nothing to do but wait for the next set-up and that can only happen with a bout of bad news.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator Reading – 49 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator Reading – 56 (neutral)
- Volatility Indicator – Ultimate Indicator Reading – 56 (neutral)
- S&P 500 % Above 50-Day Moving Average – 62 (neutral)
- Nasdaq 100 % Above 50-Day Moving Average – 89 (overbought)
***********
THE BOTTOM LINE: The Fear/Greed Index is currently reading 52 or “Neutral.” This doesn’t really tell you anything except that it has probably seen the worst in terms of extreme negative sentiment. One more quick trip to the “Extreme Fear” area will probably be all that it takes for another tradable intermediate term bottom.