Tuesday, January 12, 2016

NYMO McClellan Oscillator Daily Chart

The NYMO was posted a day ago highlighting the extreme low reading that identifies market bottoms. That was at -55, then it printed -66 and now, yesterday, prints -71. The baby has been thrown out with the bath water so a stock market rally would be anticipated. The SPX printed a low at 1901 yesterday and staged a late day recovery rally. S&P futures are +18 about 15 minutes in front of the opening bell. A rally is expected for stocks but remain cautious since the markets have a lot of moving parts lately. Keystone added a couple of long index ETF plays from late last week thru yesterday.

Keybot the Quant remains short but is in position to potentially flip to the long side today. Time will tell. A substantive bull rally will not be christened unless Keybot flips long. 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.

Note Added Thursday Evening, 1/14/16: The NYMO ticked down to -88 and today prints at -57 so these negative NYMO prints are fully consistent with a near-term market bottom. The SPX rallies 32 points, +1.7%, to 1922. The SPX rallies from a LOD at 1879 to a HOD at 1934, a huge 56-handle intraday move! The SPX would be expected to trend higher until the NYMO prints +30 and higher where a market top will begin to appear.

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