WALL STREET CRAPS STOCK MARKET STRATEGY APRIL 7, 2024
The stock market haD been on a relentless advance since its bottom in October of last year. However, these past two weeks have shown signs of a possible topping pattern and a time to move to the sidelines or lighten up on long positions. From a Dow Theory perspective, the Dow Transportation Index may provide a non-confirmation of a new Dow Industrial Average high. And if other major indexes and technical indicator also fail to confirm a new closing high in the Dow Jones Industrial Average, then we will have a classic “Sell Everything” Joe Granville Sell Signal worth respecting. This all makes for an interesting time.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 45 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 49 (neutral)
- Volatility Indicator – Ultimate Indicator – 33 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 57 (neutral)
***********
NYSE McClellan Summation Index: This index’s oscillator has a current reading of 47. But the daily readings just closed below its 15 Day Moving Average two days ago. This suggests that a bigger decline may be in the cards over the shorter term and not a time at all to buy or hold.
Fear/Greed Index: This popular indicator is in the “Greed” territory with a reading of 61. It is too early to buy based on this indicator which has been very accurate in picking bottoms to the exact day. Maybe a lot of people are watching and acting on this index.