NYMO McClellan Oscillator and SPX S&P 500 Daily Charts Signal Near-Term Market Bottom At Hand

What do you think will happen? Once the boat is fully loaded on one side, stocks will seek the opposite side. Traders were panicking and throwing stocks overboard with reckless abandon on Friday. The McClellan Oscillator collapses to -65. The baby is thrown out with the bathwater. The stock market may bump around to begin next week but a bottom would be expected sometime between Monday and mid-week due to the uber low NYMO. This set-up jives with the CPCE put/call chart posted a short time ago.

As the chart displays, a NYMO above 40-ish indicates a stock market top is at hand while a reading under -50-ish indicates a stock market bottom is at hand.

The Paris terrorist attacks may create a negative global trading environment to begin the new week but the expectation is that stocks will seek a near-term bottom and recover just like all the other green circles. 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.