Sunday, October 11, 2015
NYSI NYSE Summation Index and NYA NYSE Composite Daily Charts
The McClellan Summation index totals the McClellan Oscillator readings and is used to judge the longer-term picture of the markets. The summation index declares bullish markets above the zero line (green circle) and bearish markets below (red circle). It appears that much of the strong rally has ran its initial course as the NYSI threatens to turn positive.
The dark red dot show when the McClellan drops under the zero line signaling bearish markets ahead. The NYA chart shows that you are well-served to follow the indicator although it did not catch the exact top. It would have had you exiting long positions and bringing on some shorts in early June at 10920-ish. The NYA rallied higher after that in June to 11150-ish but rolled over and became toast. The NYSI sell signal would have kept you out of the waterfall crash as the majority of investors, that did not heed Keystone's stock market top call this year, went over the falls in a barrel.
Right now, the potential for a near-term top is in play in the short term (see NYMO chart), however, the NYSI may move above the zero line which will create optimism in the bull camp that the next few weeks will receive some upside love. You have to monitor the NYSI to see how it goes and even though it may turn positive it could very well reverse quickly back into the bear camp. NYMO and NYSI are too useful tools to constantly monitor for the short term and long term, respectively. 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.