Home > Stock Market Strategy > WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 17, 2016

WALL STREET CRAPS STOCK MARKET STRATEGY – JANUARY 17, 2016

January 16th, 2016

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 17, 2016: The stock market experienced another severe down move this past week putting it in position to challenge last August’s lows. Those who were looking for a short-term bounce to trade were hurt badly by quick reversals and large gaps down. Look for a test of Dow 15700 and a bounce from that level. Or it might take one more failed rally and plunge before the masses finally throw in the towel – marking the bottom of this cycle.

Key underlying short-term market indicators show the following:

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THE BOTTOM LINE: Be careful here. The climate right now is ripe for a crash to happen. While sentiment is largely negative and all short-term breadth indicators are severely oversold, there is still room to the downside in terms of price. If you’re going to bet on a quick bounce, look to trade on weakness below Dow 15666. But overall, it feels like the bearish sentiment needs more time to ferment into genuine “blood on the street” for public investors. One more downwards zig-zag may do the trick.

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