NYMO McClellan Oscillator and NYA NYSE Composite Daily Charts; Bounce Signal

The NYMO drops like a stone during the market selloff last week and at -91 is uber oversold so a bounce is on tap for stocks at anytime in the daily time frame. The prior green circle bounces either occurred coincidentally with the NYA price bottom or the NYA bottomed within a few days time after the low print in the NYMO.

Note the rising channel in the stock market until the summer time when happy tax bill talk was occurring and of course most importantly, continued easy money from the ECB and BOJ. That sent stocks on a steeper upside channel. The tax-cut bill was signed at Christmas time and everybody and his bro are throwing money at the stock market afraid they are missing out. On the NYA above, anyone that went long after the fifth trading day of the year is now holding their heads on a platter. That NYA chart pattern behaves like a run-of-the-mill commodity ending in a parabolic spike that then quickly retreats. 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.