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NASDAQ McClellan Indicator and SP500:  Oversold Zone ?
August 5 ( From Stockcharts )
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​​​The Situation

​​​We observed that when the NASDAQ McClellan Indicator was going near +10
( on a ratio adjusted basis ), most of the time, the market was taking
​a pause or entered into a correction as you may see in the chart below...

​​​​And when the NASDAQ McClellan Indicator was going near -30
​( on a ratio adjusted basis ), most of the time, the market ​was taking a
​pause or entered into a bullish trend.

This indicator is in Oversold Conditions already: ​the market 
​​is expected to start a tiny upwave correction after that indicator
​reached -30 within the next few sessions as history suggest.

Only a tiny dead cat bounce has we had in May before resuming
​downtrend ​
( See chart below )...

But the most interesting technical factor is at a time were this indicator is into the ovesold zone, we are testing the 50 DMA (Day Moving Average) on SP500 as shown by the chart below.
​( See chart below - bottom panel - ellipse - blue line ).​​


 Louis Pateur
"Chance favors the prepared mind."

NASDAQ McClellan Indicator and SP500: Oversold Zone ? $SPY, $SPX  #trading #SP500 #stocks

Nasdaq McClellan Oscillator ( Ratio adjusted - Dots - Top Panel )
7 DMA ( Blue Line ​)
and SP500 Index ( SPX - Candles - Bottom Panel )​
200 DMARed Line ​)