WALL STREET CRAPS STOCK MARKET STRATEGY JULY 31, 2018
STOCK MARKET STRATEGY FOR JULY 31, 2018: The market has dropped quickly into a semi-oversold condition. This would suggest that a bounce could occur in the next day or two. But after the bounce should come another wave down into a better buying opportunity. Be ready in case the market presents the right conditions for a tradable rally at the end of this week or the beginning to next week.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator Reading – 28 (oversold)
- Nasdaq McClellan Oscillator – Ultimate Indicator Reading – 22 (oversold)
- Volatility Indicator – Ultimate Indicator Reading – 36 (neutral)
- S&P 500 % Above 50-Day Moving Average – 35 (neutral)
- Nasdaq 100 % Above 50-Day Moving Average – 11 (oversold)
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THE BOTTOM LINE: The Fear/Greed Index is currently reading 64 or “Greed.” I’m still awaiting for a quick move into the “Extremely Fear” area in order to feel like the conditions are ripe for a more sustainable rally. So, we continue to wait for a better trading opportunity to the upside.