WALL STREET CRAPS STOCK MARKET STRATEGY AUGUST 12, 2023
The stock market has been correcting for the past few weeks since the end of July/early August. The technology sector has taken a harder hit than the rest of the market. The internal indicators show that the market can go in either direction, but the NYSE McClellan Summation Index suggests that the decline has more time to go. But price-wise, the SPX 55-Day Moving Average is getting close and provides support to the market for bounce. But it is unusual for a market to reach an intermediate hit and an intermediate bottom in the same month.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 40 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 20 (oversold)
- Volatility Indicator – Ultimate Indicator – 53 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 41 (neutral)
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NYSE McClellan Summation Index: This index’s oscillator has a current reading of 45. This indicator has been trending lower for 10 trading days now. It is approaching an oversold reading which says that a tradable bottom is approaching. This is one of the most reliable intermediate-term trading indicators and gives you plenty of time to prepare.
Fear/Greed Index: This popular indicator is in the “Greed” territory with a reading of 67. The next solid upside trading opportunity doesn’t appear unless this trusty indicator hits a reading of 25 or less (Extreme Fear).