WALL STREET CRAPS STOCK MARKET OBSERVATIONS FOR JANUARY 25, 2015
STOCK MARKET OBSERVATIONS FOR January 25, 2015: The stock market presented two short-term buying opportunities during the past week for a ride back up to challenge the old highs. Now that we are in “middle ground” with all seven of the indicators below at “neutral” readings, the market can go in either direction with the same level of certainty. This appears to be one of those times where the market is churning while looking for new strength or further weakness to come in.
Key underlying market indicators show the following:
- NYSE Breadth Oscillator – Ultimate Indicator – 59 (neutral)
- NYSE % Above 50 Day Moving Average – Ultimate Indicator – 57 (neutral)
- NYSE Overbought/Oversold Indicator – Ultimate Indicator – 58 (neutral)
- Nasdaq Breadth Oscillator – Ultimate Indicator – 53 (neutral)
- Nasdaq % Above 50 Day Moving Average – Ultimate Indicator – 48 (neutral)
- Nasdaq Overbought/Oversold Indicator – Ultimate Indicator – 53 (neutral)
- Volatility Indicator – Ultimate Indicator – 65 (neutral)
- Risk On/Risk Off Indicator – Ultimate Indicator – 58 (neutral)
- Stocks vs. Bonds Indicator – Ultimate Indicator – 54 (neutral)
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My advice for traders and investors is to either maintain only light positions in broad-based Exchange-Traded Funds such as DIA, QQQ, and SPY or be out of the market entirely waiting for a bottom. If the market should decline from here, look to add to positions as the general conditions becomes more oversold.