Tuesday’s stock market rally was misleading since breadth measures revealed a 3-1 advance decline.
This in turn led the trusty McLellan Oscillator (NYMO) to approach a -100 reading. In the 40 years I’ve been involved with markets this type of reading has always produced either a short squeeze rally. The same oversold conditions were seen Tuesday for crude oil when record short interest was recorded. Throw-in some commentary and hints the Fed would do very little in the way of interest rate hikes and voila! we have a sizable rally.
I’m still going to keep commentary brief until after the Fed announcement and possibly into Friday’s options expiration. On this occasion there’s