WALL STREET CRAPS STOCK MARKET STRATEGY JUNE 16, 2022
The stock market has turned sharply lower after the FED announcement of its latest interest rate hike. The one day rally before this announcement was preceded by a couple of gap down market days. But in the process, the internal indicators are now all in “oversold” territory which signifies that a market bottom is likely to occur. This is particularly true in “Bull Markets,” but in “Bear Markets” these kind of oversold conditions are often a signal that a “Stock Market Crash” is about to happen. Because of this, it would be smart to wait until next week for a possible bottom following a “stock market crash” on Monday or Tuesday.
Key underlying short-term timing indicators show the following:
- NYSE McClellan Oscillator – Ultimate Indicator – 24 (oversold)
- Nasdaq McClellan Oscillator – Ultimate Indicator – 28 (oversold)
- Volatility Indicator – Ultimate Indicator – 27 (oversold)
- NYSE Advance/Decline Oscillator – Ultimate Indicator – 22 (oversold)
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NYSE McClellan Summation Index: This indicator has a current reading of 46 but still needs a few more days before reaching the buying zone. Thus, it is saying that the market needs more time in order to find a bottom and in the meantime it could continue on its sharp downward path.
Fear/Greed Index: This popular indicator is in the “Extreme Fear” territory with a reading of 14. Recent intermediate-term market bottoms have had readings under 5.