Thursday, June 6, 2013
NYMO NYSE McClellan Oscillator Daily Chart
The NYMO drops to -107 yesterday now in the zone where the May 2012 and August 2011 sell offs moderated. Thus, a dead-cat bounce would be anticipated from here. The Williams is buried at -100 with no further place to go below. Note that the prior sell offs in the broad indexes continued after the low NYMO prints so the low number does not necessarily say a bottom is in, but it says more that a temporary bottom is in, and that lower prices in the SPX and other major indexes will remain on the table for the days ahead. Nonetheless for short term and day traders, a quickie trade or two with long exposure is something to consider at this juncture. The SPX tapped on the 50-day MA at 1605.12 so this hints that a bounce from this critical moving average may be on tap. 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.