Replies to post #20730 on SPDR S&P 500 (SPY)

[Footquarters]

McClellan do over



http://stockcharts.com/charts/indices/McSumNASD.html


http://stockcharts.com/charts/indices/McSumNYSE.html

[Jiorden]

My thoughts exactly. That's why in my first post, I mentioned "With these indicators, it's always easier to spot bottoms in an upward trending market... and tops in a downward trending market." In an upward trending market most of the data points are concentrated at the top end of the indicator, making it easy to spot a move to the lower end of the indicator. In a downward trending market most of the data points are concentrated at the bottom end of the indicator, making it easy to spot a move to the higher end of the indicator.

In my humble opinion, I do think this is only a correction. So I will look for these indicators to first enter into over-sold regions and watch for them to start trending upward as they did in previous pullbacks.

[Jiorden]

*clarification*

Indicator data points are not AS concentrated on the lower end of the chart on downward trends as they are on the higher end of the chart on upward trends.

While I do agree with you, that data points do appear more frequently at the lower end during downward trends then they do in upward trends, I don't know if I would go as far as saying it would be like looking at the current indicators (during this upward trend) upside down.

I ran the indicators during the 00 bear market, looks like using all indicators together would have still given some decent entry levels for short 1-2 month rallies.