NYMO NYSE McClellan Oscillator Weekly Chart

The NYMO is moving lower in recent days matching levels at where recent market bottoms have occurred. Taking a step back, hence the weekly chart, the longer term and far more significant market tops and bottoms occur at the +80 and -80 levels, respectively. The Fed and BOJ have grossly distorted the markets and price discovery and note how the NYMO has printed in a far more narrow range using +40 and -40 levels to signal near-term tops and bottoms, respectively. Thus, the big question now is that does the current trend remain in place and this area is a logical place for markets to bounce and receive more central banker juice, or, does the longer term picture come back into play, as the central bankers run out of gas, and the NYMO may want to explore far lower values more consistent with the -80 level and lower?

Note how the NYMO prints its low typically about one week or so ahead of where the index price low occurs. The markets are far overdue for a more decent correction than the shallow pull backs this year that result in more Fed and BOJ-induced buying. The story will be written in the days forward. Projection is either a near-term dead-cat market bounce right now off the -40 print to send the NYMO higher to set up another roll over in the week or two ahead, or, the bears come to play as the new week begins tomorrow and drive the SPX back down towards 1600 and lower which would be consistent with a NYMO printing in the -60 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.