Archive for June, 2022


June 17th, 2022 Comments off
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The stock market has turned sharply lower after the FED announcement of its latest interest rate hike. The one day rally before this announcement was preceded by a couple of gap down market days. But in the process, the internal indicators are now all in “oversold” territory which signifies that a market bottom is likely to occur. This is particularly true in “Bull Markets,” but in “Bear Markets” these kind of oversold conditions are often a signal that a “Stock Market Crash” is about to happen. Because of this, it would be smart to wait until next week for a possible bottom following a “stock market crash” on Monday or Tuesday.

Key underlying short-term timing indicators show the following:


NYSE McClellan Summation Index: This indicator has a current reading of 46 but still needs a few more days before reaching the buying zone. Thus, it is saying that the market needs more time in order to find a bottom and in the meantime it could continue on its sharp downward path.

Fear/Greed Index: This popular indicator is in the “Extreme Fear” territory with a reading of 14. Recent intermediate-term market bottoms have had readings under 5.