WALL STREET CRAPS STOCK MARKET STRATEGY MAY 7, 2020
May 7th, 2020
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STOCK MARKET STRATEGY FOR MAY 7, 2020: The stock market has been hovering in a tight trading range for the last couple of weeks. During this time, a few of the internal oscillators have come down to the “oversold” range. That brings the possibility of a short-term bottom in 2 to 3 trading days if the trend continues down. But be careful of a potential crash, too.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 35 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 29 (oversold)
- Volatility Indicator – Ultimate Indicator – 50 (neutral)
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THE BOTTOM LINE: The stock market is approaching a possible short-term buying opportunity as the internal indicators move down to oversold readings. But a trader must be careful not to jump the gun since there could be a downside break with momentum or a possible mini-crash.