WALL STREET CRAPS STOCK MARKET STRATEGY OCTOBER 6, 2025
The stock market has been on a record shattering rally since the April “Trump Tariff” bottom. This rally has exceeded all expectations and brings to mind the concept of a “5th Wave Blow-Off.” But that kind of thinking can be a trading trap and it’s best to just play it carefully and wisely. With that being said, today represented the 7th consecutive closing DJIA all-time high and a pullback can be expected. But how long is anyone’s guess. Just remember that it is October, a month that is notorious for sharp corrections.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 58 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 59 (neutral)
- Volatility Indicator – Ultimate Indicator -48 (neutral)
- Risk On/Off Trend Indicator – Full STO Indicator – 33 (neutral)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 58 (neutral)
***********
NYSE McClellan Summation Index: This index’s oscillator has a current reading of 19. This indicates that it is in “oversold” territory but far from “clustering” as in the case of forming a bottom. Until we see more points in a tight area, a bottom is not here yet.
Fear/Greed Index: This popular indicator is in the “Neutral” territory with a reading of 54. This does not indicator a buying area but could go in either direction.