WALL STREET CRAPS STOCK MARKET STRATEGY AUGUST 23, 2022
The stock market has declined sharply from its rally highs only one week ago. The short term oscillators are all in oversold territory suggesting that a bounce is due at any time now. Perhaps, Wednesday will be a day that opens lower, scares bulls into dumping, and turning around for a positive close. But where the market goes on an intermediate term basis is anyone’s guess at this time.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 15 (Oversold)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 16 (Oversold)
- Volatility Indicator – Ultimate Indicator – 30 (Oversold)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 29 (Oversold)
***********
NYSE McClellan Summation Index: This indicator has a current reading of 74 which is just coming out of overbought territory. This suggests that an intermediate term bottom has not had enough time to set up and any trades on the long side are for short-term speculation only.
Fear/Greed Index: This popular indicator is in the “Neutral” territory with a reading of 45. A reading below 25 is needed for a tradable low based on this sentiment indicator.