Friday, March 10, 2017

NYMO McClellan Oscillator and NYA NYSE Composite Daily Charts

The NYMO is signaling a near-term bottom for stocks over the coming days. This came out of left field. Keystone has been calling out the NYMO chart for its odd behavior of not being able to print a low number (under the brown line) for the last four months and all of sudden, whoosh. NYMO plummets to -89 which is consistent where a market bottom would occur. The put/call ratios are moving up but not exactly at the point where an attractive bottom would be in place for stocks. Therefore, stocks may trade choppy over the next few days but a near-term bottom is likely in the cards. The full moon peaks for the month tomorrow and stocks are usually bullish moving through the full moon.

The green circles show market bottoms and red circles are tops. The bears have been short-changed for many years due to the power of the central bankers and since November stocks are running higher on President Trump's daily joyous proclamations.

The blue bar is Interesting on the longer term multi-week and multi-month basis. That is where the May 2015 market top occurred, which probably should have been THE top, but the central bankers came out firing both barrels and saved the day in early 2016, as has been the case since March 2009.

After the low print in late 2014, the stock market rallied back to the highs and then went sideways printing the market top in the springtime of 2015. A similar fractal may play out this year. In the very short term, stocks are looking for a place to rally with the low NYMO. S&P futures are up +10 with the jobs report imminent. There should be a near-term bottom in play during the coming days. Obviously, the jobs report this morning is a key market mover and the Fed rate decision on Wednesday, 3/15/17, will be an epic day in market and economic history. 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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