NYMO McClellan Oscillator Weekly Chart Signals Market Top

The NYMO continues to hint that a market top is in place. The S&P futures are running higher this morning on happy Europe PMI's, lower China PMI since it means stimulus is coming, higher copper and earnings generally beating the lowered estimates. Below -40 indicates markets bottoming while 40+ indicates markets topping. Typically the peak and trough signals occur in concert with the broad indexes give or take a few days. The May top, however, is interesting since the NYMO peaked during the last week of April but the markets did not sell off right away, instead, equities kept marching higher into the 5/22/13 top. This is about a three-week left translation. Very interesting. Thus, if using the NYMO as a signal in late April, the pesky (from a bear's perspective) SPX continued 40 to 50 handles higher before collapsing. Equating this fractal to current conditions, shows the NYMO topping on 7/8/13. The SPX continues higher without worry or concern.  Adding about three weeks onto the 7/8/13 date is about 7/29/13, Monday, three trading days away, so very close to the same translation target. The SPX was around 1650-ish a couple weeks ago in the midst of the melt-up move, so a 40 or 50 handle extension like the prior fractal would target this 1690-1700-ish area as a top.

What does all this mumbo jumbo mean? Markets are in a topping area right now and would be expected to roll over at anytime in the days ahead. Can the NYMO venture higher if the SPX is pumped more by the Fed? Sure it can. But at these levels for NYMO, any push higher simply extends the market topping process and should continue to lead to a roll over at anytime forward. 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.