NYMO NYSE McClellan Oscillator Daily Chart

NYMO is on board with the NYAD and CPC as well. Note the August uber low at -140 marking a significant bottom for the markets. We are now under -100 matching this extreme low level of trader negativity. With many of these tools, you must think contrarian. Uber lows indicate folks throwing in the towel, indiscriminate selling is occurring, a 'woe is me' mentality is prevalent, and traders that were bullish now abandoning their stand and joining the short side; all signs that the market will actually pop.

The circles across the top portion of the chart show the recent market peaks, clearly showing that market tops occur at NYMO levels above +20, and especially in the +80 area. Market bottoms occur at NYMO levels of -40 or lower. At -106 now, markets are very agreeable to receiving a bounce to recoil from this high negativity. 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.