Monday, July 15, 2013

NYMO McClellan Oscillator Signals Significant Market Top

The NYMO chart is of interest over the last couple weeks. Type 'NYMO' into the search box at the right to bring up the prior two charts for further study.  The green circles show market tops and the red circles show market bottoms. In general, as NYMO moves under -40, longs need to be brought on and shorts covered. At -90 the markets will reverse quick and sharp to the upside, which it did one month ago. As NYMO moves above +30 it is best to start throwing longs overboard and bring on shorts.  At +60 the markets will reverse quick and sharp to the downside.

Note how with Friday's market up day the NYMO actually dropped. The indicators are setting up with negative divergence to create a spank down but the RSI and MACD line may have a touch more juice to draw things out this week. Markets are typically bullish through Chairman Bernanke's Congressional testimony.  The double circles show the significant tops and bottoms over the last year with a top in September 2012, bottom in November 2012, top in May 2013 and bottom in June 2013. What do you think will happen now? 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.

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