Wednesday, September 18, 2013

NYMO McClellan Oscillator Daily Chart

The NYMO is at the same levels as the May and July market tops. The May top was 5/22/13 so the NYMO peaked out about 2 weeks prior. The June bottom was around 6/24/13 with the NYMO printing the -100 numbers three times at the bottom over a 2-week period. The 8/2/13 market top was signaled 2 weeks in advance at +60-70 like the May top. The market bottom in late August was telegraphed by the NYMO about one week in advance with the -100 print. NYMO is back in the 60-70 range again so using the prior patterns, the markets should top out any day over the next week or two.

The indicators are negatively diverged wanting to see a spank down in price except for the MACD line that has a bit more juice. So it may take a few days, as the first paragraph describes, for the NYMO to drop, then print another high in the 60's, which will create negative divergence on the MACD line, and then roll it all over to the downside. Today is key with the Fed announcement on tapering imminent, however, the market action into the first week of October, in general, should prove to be quite dramatic and entertaining. Projection is for markets to top out at any time in the coming days. 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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