WALL STREET CRAPS STOCK MARKET STRATEGY FEBRUARY 5, 2023
The stock market is broke through major resistance to new rally highs this past week. The Bulls were encouraged by positive remarks from the Fed despite some weaker-than-expected earning from several major tech companies. Thursday’s late action along with Friday’s retreat has reset the internal indicators to neutral positions. I will be looking for a short-term oversold condition to add some long positions for the short-term.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 37 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 47 (neutral)
- Volatility Indicator – Ultimate Indicator – 56 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 72 (neutral)
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NYSE McClellan Summation Index: This index’s oscillator has a current reading of 92. This is both a sign of strength and one of being overbought. But does appear to indicate that this indicator is most likely at its peak and that the major part of the current rally is over.
Fear/Greed Index: This popular indicator is in the “Extreme Greed” territory with a reading of 76. This is the first time that it has been in this range for a long time. I can easily spend more time here, but an investor should be careful about joining the Bull crowd at this late time.