NYMO NYSE McClellan Oscillator Daily Chart

The NYMO is now printing at the April and May lows where market bottoms occurred.  The mid-April low resulted in about a 50 to 60 handle move higher over three weeks that then rolled over to begin the large May selloff.  The behavior now is similar to the mid-April low so the fractal from April-May may play out as time moves forward.  Even after the NYMO bounces, the indicators hint that lower lows will be desired.

The green, blue and red circles represent the April-May selloff.  The SPX dropped to 1360 and bounced to 1410 (green circle).  The SPX rolled over and fell down to 1290 and bounced to 1335 (blue circle). Then another selloff to finish the fifth wave down to 1270 which started the long rally from June.  So each bottom identifed a pop in the SPX of from 25 to 50 handles in only a couple weeks or so time. So that is what we likely face in the days ahead. A market bottom will occur for the SPX at anytime and the bounce may be about 25 to 50 handles, then will roll over again.  The ultra bear scenario, a market crash, is on the table for tomorrow or Friday.  Also, the action over the next couple days may identify a more sturdy bottom like early June.  At any rate, NYMO is poised to jump higher which will correspond to the broad markets recovering.  The NYMO chart remains weak, however, so lower lows should occur after a bounce. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.