WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 24, 2021
The stock market has been doing a great job of “climbing the wall of worry.” On Thursday of this past week, many short-term indicators topped out and the evaluation is whether it did so from: 1) exhaustion & a move down across the trading range or 2) just a pause before resuming its relentless climb. Unfortunately, no one really knows despite what they may claim with almost total certainty. I would look for either a decline and then a failed retest or a high volume reversal before making any bets to the downside. Sometimes it’s just better to watch from the sidelines and preserve your capital (chips).
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 58 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 57 (neutral)
- Volatility Indicator – Ultimate Indicator – 81 (overbought)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 84 (overbought)
***********
Fear/Greed Index: This popular indicator is in the “Greed” territory with a reading of 67 after being in the “Extreme Greed” zone for a day or so. This indicator gave a one-day buy signal in early October, but it is not a reliable timing tool for catching tops. Therefore, it’s not worth reading too much into its reading this coming week.