WALL STREET CRAPS STOCK MARKET STRATEGY – JUNE 12, 2016
STOCK MARKET STRATEGY FOR JUNE 5, 2016: The stock market hit its high for this rally since February on Wednesday just above the 18,000 mark of the DJIA. With the internal indicators all trending down, the major averages might reach an oversold conditions this coming week and produce a bounce. This bounce will tell whether there is enough strength to continue the rally or begin a longer, intermediate-term decline of significance. In any case, be prepared for scary volatility in both direction for the rest of this month.
Key underlying short-term market indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 38 (neutral-trending down)
- NYSE Overbought/Oversold Indicator – Ultimate Indicator – 36 (neutral-trending down)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 35 (neutral-trending down)
- Nasdaq Overbought/Oversold Indicator – Ultimate Indicator – 34 neutral-trending down)
- Volatility Indicator – Ultimate Indicator – 22 (neutral-trending down)
***********
THE BOTTOM LINE: The stock market may have reached the end of this rally since February 11th this past Wednesday. As such, treat any bounces as chances to lighten up or get out of the market. We could get oversold reading this week which would produce a retest bounce. That bounce may be a wise time to take the money and run. This may be a significant intermediate change in the market’s direction.