The NYMO rockets higher to 73 so a stock market selloff and move lower is at hand ready to begin at anytime. When the McClellan Oscillator moves above +40, you have to start looking for a stock market selloff. When the NYMO is below -40, washing-out lower, you have to start looking for a stock market recovery rally. What do you think will happen in the days ahead? That -110 reading is a historic low that laid the groundwork for Friday's big rally days later. Now the uber high +73 is foretelling a pullback in the short-term.
The NYMO jives with the low put/calls expecting weakness in stocks for a few days or week or so ahead. This behavior jives with the SPX weekly chart that likely needs a week or two to base and then a solid multi-week relief rally can begin. Markets are subject to news bites, as evidenced on Friday with both the PBOC and Fed promising to pump stocks higher with more easy money. The central bankers are the market. 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.
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