WALL STREET CRAPS STOCK MARKET STRATEGY – SEPTEMBER 18, 2016
STOCK MARKET STRATEGY FOR SEPTEMBER 18, 2016: The stock market has retreated and bounced around for the last few weeks. The internal indicators are near the lower range and could reach oversold readings if the market should fall in the coming days. Look for weakness early this week with the opportunity to buy near the end of the week for another run to new highs. If that scenario doesn’t set up that way, then step aside and let the market create a different kind of opportunity further down the road.
Key underlying short-term market indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 40 (neutral)
- NYSE Overbought/Oversold Indicator – Ultimate Indicator – 40 (neutral)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 43 (neutral)
- Nasdaq Overbought/Oversold Indicator – Ultimate Indicator -43 (neutral)
- Volatility Indicator – Ultimate Indicator – 37 (neutral)
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THE BOTTOM LINE: The internal indicators are neutral but within range of a bottom. While the readings have not been very severe to the downside, the length of time in this lower range suggests that a move up should be coming soon. It is based on that factor, that I’d be ready to move into action should we see weakness at the beginning of next week.
