WALL STREET CRAPS STOCK MARKET STRATEGY JANUARY 24, 2021
STOCK MARKET STRATEGY FOR JANUARY 24, 2021: The stock market rallied strongly on January 20th and has settled back while consolidating its gains the past two trading sessions. This suggests another rally attempt to new highs during the coming week. Be careful out there because this next new high may be an intermediate top worth selling into if you still have extended long positions. But if we have some selling early in the week, it would present a “buying the dip” opportunity worth taking since the short-term oscillators are not overextended.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 44 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 45 (neutral)
- Volatility Indicator – Ultimate Indicator – 57 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 64 (neutral)
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NYSE McClellan Summation Index: This key trend indicator is hovering around its 15 day moving average. The data points have been “clustering” which suggests a strong move in either direction. This tells me that this new anticipated all-time high coming up this week may be a tricky one.