WALL STREET CRAPS STOCK MARKET STRATEGY SEPTEMBER 11, 2021
The stock market appears to have topped out over the shorter-term on September 2nd. Since that time, the market has been trending downwards towards a possible bottom in mid-September. Recent bottoms have occurred on July 19th and August 19th which were 23 trading days apart. If that same pattern were to repeat itself, then the next bottom would be between September 19 and September 22. So be ready for a quick trade to the upside if the conditions for a bottom look worth risking.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 36 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 33 (neutral)
- Volatility Indicator – Ultimate Indicator – 26 (oversold)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 42 (neutral)
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Fear/Greed Index: This popular indicator is in the “Fear” territory with a reading of 34 after being in the “Neutral” and “Greed” zone for the past two weeks. The best buy signals on major corrections have occurred when the reading gets below 10. But a minimum reading of 25 would be required for a short-term bottom worth trading.