NYMO McClellan Oscillator Daily Chart

When the NYMO moves above +40 the markets are topping and when price moves under -40 the markets are bottoming. The red boxes show the current price behavior following the pattern of the May fractal. Markets are at a key inflection right now (the maroon circle). Note how the NYMO topped two weeks ahead of the May top at 5/22/13 and the timing of the market top coincided with the NYMO failure through the zero line and the 55 MA. The NYMO topped two weeks ago and the SPX remains at elevated levels only a few points from the highs, a very similar set-up to May. In May, this behavior is where the SPX started dropping and fell from 1687 to 1600, almost 90 handles, in 11 days. It will be interesting to see if the same behavior of May occurs moving forward. We do not have to wait long. The answer will occur in the days ahead. Even if the NYMO heads higher, this will simply continue to set things up for a market pull back. The indicators are weak and bleak favoring more downside for the NYMO moving forward. 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.