WALL STREET CRAPS STOCK MARKET STRATEGY JUNE 19, 2024
The stock market has been continuing its relentless march upwards in terms of the S&P 500 and the Nasdaq Indexes. At the same time, the Advance/Decline Line, the Dow Jones Industrial Average and the Dow Jones Transportation Average have not confirmed that same strength. This presents a time to be extra careful about trading the upside for too long of a time and trading the downside too early or in the wrong sectors.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 54 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 49 (neutral)
- Volatility Indicator – Ultimate Indicator – 60 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 47 (neutral)
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NYSE McClellan Summation Index: This index’s oscillator has a current reading of 22. This clearly means that a bottom is closer than a top. This is a rare occurrence when many major indexes are making new highs.
Fear/Greed Index: This popular indicator is in the “Fear” territory with a reading of 42. This means that the market could head lower and reach a bottom soon. Or the market can head higher for a much longer period of time.