NYMO McClellan Oscillator Daily Chart

The green circles show where market bottoms occur due to the oscillator moving above zero, the MACD positive cross occurring and the MACD line crossing above its zero line.  The red circles show where market tops occur due to the oscillator moving below zero, the MACD negative cross occurring and the MACD line crossing below its zero line. Market bottoms are identified when the NYMO drops down into the -60 to -100 and lower range. Market tops are identified when the NYMO spikes up into the +60 to +100 and higher range.

The NYMO just slipped under the zero line; bearish. The MACD negative cross occurs; bearish. The MACD line is about to cross down through its zero line, but not yet; bullish. Note how the NYMO approaches the zero line, from above or below, and tends to kiss, retreat, and then pierce through, thus, markets may stutter step sideways a couple days or so but if price firmly stays under zero and heads lower towards -60, the equity markets will be selling off. 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.

Note Added 4:53 AM on 11/5/13: The MACD line crosses down through its zero line, bearish, but the sneaky bulls push the NYMO back above the zero line to close at 2.74. This creates the jog move discussed above so watch to see if the NYMO now collapses down through the zero line moving forward.