NYMO McClellan Oscillator Daily Chart

NYMO indicates that markets are at or moving towards another top again. The green circles  are market tops and the red circles are market bottoms over the last year. The major tops and bottoms are the double circles and show that +60 and higher locks in a market top while -90 and lower locks in a market bottom. In general, markets are moving towards a top when the NYMO moves above +20 and higher, like now, and markets are moving towards a bottom when the NYMO moves below -40 and lower, which identified the bottom a couple weeks ago.

The indicators are negatively diverged wanting to see the NYMO head lower now in concert with the broad indexes selling off, however, the MACD line remains long and strong. Typically, this will create a jog move, down, back up once more, then down. NYMO should top out anytime now over the next few days and point the way lower again. A couple more strong days can allow the SPX to print at or near all-time highs which are only 10 to 30 handles away. NYMO hints that is prudent to pare back on the long side and edge into the short side moving forward as price tops in this 41+ area. 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.