NYMO McClellan Oscillator Daily Chart

Recent tops are shown by the red circles so a move above +30 signals that the markets are far too elevated and need to sell off. Conversely, the recent market bottoms are shown by the green circles so a move below -40 signals that the markets are starting to become to far ovesold and a market rally will be needed.  The NYMO is at -39 entering the lower zone. The red lines show the weak and bleak indicators that would like to see lower numbers for the NYMO even if a bounce occurs. The 13 and 34 MA cross in October signaled the continued market downside, then the 13 MA above the 34 MA in November verified the all-clear signal for bulls, then the top occurs about seven days ago at +40.  The 13 MA is about to stab down thru the 34 MA which would signal market behavior like October. Watch for a market bounce from the -50 to -100 area. 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.