WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 29, 2020
STOCK MARKET STRATEGY FOR OCTOBER 29, 2020: The stock market is in a clear correction and set up right now as we head into the November election. The internal indicators are mostly oversold or quickly approaching those levels. My guess is that a bounce is coming either today or tomorrow. But the real question will be: what will the market do after Election Day? I answer I expect: It will do the opposite of what it did in the days before.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 30 (oversold)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 25 (oversold)
- Volatility Indicator – Ultimate Indicator – 22 (oversold)
- Advance/Decline Oscillator – Ultimate Indicator – 44 (neutral)
- Dow Jones Transportation – Money Flow Indicator – 39 (neutral)
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NYSE McClellan Summation Index: This key trend indicator remains below its 15-day moving average and is expanding to the downside. Because of this indicator, a trader/swing trader should be very careful about waging too much capital on a long-side bet too early.