* bears need a lasting hold below the RSI-14 40 level, while bulls must defend the 40 level on a lasting basis
** bulls must hold the cumulative net Advancers minus Decliners lines for each index above the 50-day SMA on a lasting basis or bears have an opportunity to continue the price damage beyond Monday September 21, 2020
monthly ITBM for $SPX in Point & Figure chart form -
* Carl Swenlin's Intermediate Term Advance-Decline Breath Momentum continues to decline in September 2020, and now the ITBM resides briefly below its zero line
charts above display cumulative net Advance-Decline breadth lines which are the cumulative total of daily net Advance-Decline values
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
( 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 to the McSum zero line currently represents one objective measure of the minimum downside risk
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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