Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 23, 2015

WALL STREET CRAPS STOCK MARKET STRATEGY – AUGUST 23, 2015

August 23rd, 2015

craps front coverSTOCK MARKET STRATEGY FOR AUGUST 23, 2015: The Fear & Greed Index has a current reading of 5 indicating “Extreme Fear.” This means that in terms of sentiment, we are in the buy zone now. If we don’t get government manipulation over the weekend, it is possible that we have a panic intraday low on either Monday or Tuesday. This might lead to a short-term bounce of several hundred Dow points. And while the past declines have resulted in V-shaped bottoms, this correction may be the one that requires a retest of the lows in order to begin a sustainable rally.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: While the market has gone down a lot in terms of price and sentiment, but it has not gone down long enough in duration. That means that bounces can be played nimbly over the short term, but a safer longer term bottom is probably weeks away. You may want to play the bounce which could come on Monday or Tuesday, but it might be wiser to wait at least for the retest of Friday’s low.

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