Tuesday, August 6, 2013

NYMO McClellan Oscilator

The NYMO continues lower and is entering the -40 and lower zone where you have to start considering a near-term market bottom. The RSI and MACD line remain weak and bleak so if a bounce occurs due to the histogram, stochastics and Williams positive divergence, price may want to come back down for another low. The falling red wedge is in play. Note the May fractal with the top, then drop through +40, then through the 20 MA, then bounce off the 50 MA only to then fail the 50 MA, just like now.  So the drama is at the small square area. Interestingly, the May sell off had barely started at this point, in fact 5/22/13 was t he stock market top, but the NYMO was already heading lower providing the heads-up.

It appears a reasonable projection to expect lower lows in NYMO in the days ahead even if a bounce occurs. 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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.