NYMO McClellan Oscillator Daily Chart Sideways Symmetrical Triangle

The NYMO traveled through the sideways triangle and collapsed through the bottom rail during the middle of last week. The bears popped the corks on the wine bottles but frantically tried to push them back in as the Friday upside orgy took place. The Friday market rally sent the NYMO up for a back kiss (blue circle) of the bottom rail of the triangle, so, it is bounce or die time. Monday is very important. Further upside in equities will lead to further upside. A spank down from here will result in a much stronger move lower.

The red squares show the recent market tops while the green circles show the market bottoms. Equities remain in a 6-week funk. The Fed and other central bankers have destroyed price discovery to the point that the markets appear confused on how to proceed. A NYMO under zero is bearish and above is bullish. Despite the NYMO favoring bears for over one-month's time, equities move higher--very odd and peculiar behavior. A bottom at -40 is cheesy. To place a substantive market bottom, the NYMO should print at -60, -80, -100 and even lower. Monday should provide clarity on the path ahead. Bounce, or die. 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.