McSum chart values for indices, as of Tuesday's May 26 close -
above zero line -
+16.78 - NYSE Common Stocks Only, day #1 above zero line since February +256.65 - NYSE All Issues, day #19 above zero line +294.19 - Nasdaq Composite, day #18 above zero line +779.90 - Nasdaq 100, day #22 above zero line +111.85 - S&P 500, consecutive day #6 above zero line +294.37 - S&P 400 Mid Cap, day #19 above zero line +6.28 - S&P 600 Small Cap, day #1 above zero line since February
below zero line -
-44.45 - S&P 100, zero days above zero line since March 2 -141.88 - Dow Jones Industrial, zero days above zero line since February
The McClellan Oscillator is the difference between the 19-EMA & 39-EMA of daily advances minus declines. It reflects the short-term strength and direction of market liquidity. A longer-term view is provided by the McClellan Summation Index, which is the cumulative total of the daily McClellan Oscillator values. These indicators move within a trading range and often identify the overbought/oversold condition of the market
McClellan Summation Index
( McSum = McClellan Summation Index )
the dominant rule is: price will eventually follow the direction of the McSum, except for brief periods of price divergence
The McSum is neutral at the zero line, bullish while above, and confirmed bearish while below zero
* the distance down or up to the McSum zero line currently represents one objective measure of the minimum movement that is possible
Confirmed sell signals are a lasting decline below the McSum zero line, though price action has usually declined by a large amount by the time zero is reached from the McSum peak above.
Large distances between the McSum daily chart values represent acceleration events in the A-D breadth decline or advance, and the follow-on price impact has a high correlation with the McSum's direction, and usually has several days staying power
* time is our most under appreciated & valuable asset, lest we squander it *
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