WALL STREET CRAPS STOCK MARKET STRATEGY JANUARY 16, 2023
The stock market is currently short-term overbought and is likely to have a correction of some sort in the next week to 10 days. Once this overbought condition is relieved, the market can be expected to retest its current high and possibly breakthrough to higher ground. The most telling characteristic of the most recent bottom is that the final decline was lead by “the Generals” Apple and Tesla. As such, a good trader must be ready for the surprises that may come to the upside instead of the downside for the intermediate term.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 77 (Overbought)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 80 (Overbought)
- Volatility Indicator – Ultimate Indicator – 71 (Overbought)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 85 (Overbought)
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NYSE McClellan Summation Index: This index’s oscillator has a current reading of 77. This indicator is just now starting to cluster. So there is no indication that a significant decline is going to happen right now. It’s most recent bottom surprised me by not getting to the “oversold” area, but instead turned up at the beginning of the year.
Fear/Greed Index: This popular indicator is in the “Greed” territory with a reading of 63 and trending up. Timing-wise, this doesn’t meet the criteria for buying right now. However, bullish runs can go on for extended periods of time without much of any time spent heading towards the oversold condition.