Always consider hidden risks
NYSE Summation Index: A Macro Signal : Bullish Mode ?
​July 14  ( From Stockcharts  )
If you would like to receive our free daily markets updates, please Sign-Up

​​The Situation

​Developed by Sherman and Marian McClellan, the McClellan Summation Index
​is a breadth indicator derived the McClellan Oscillator, which is a breadth indicator
​based on Net Advances (advancing issues less declining issues).

​​The Summation Index is simply a running total of the McClellan Oscillator values.
​Even though it is called a Summation Index, the indicator is really an oscillator
​that fluctuates above/below zero. As such, signals can be derived
​from bullish/
​bearish divergences, directional movement and centerline crossovers. A moving
​average can also be applied to identify upturns and downturns.

And each time we had the 7 day moving average going up
​(it did on July 13 with SP500 at 2099), market followed​​
​as you may see ​​in the chart below...

Last time we reached that level on the 7 DMA ( Day Moving Average ) on the Summation Index was on October 23 2014 when ​the SP500 was within a rebound phase. ( See 1rst chart below- Blue Line ).​​

Observe also the divergence between the Summation Index and the SP500: ​​A Lower High from March 2015 til now on the Summation index but a new High on the SP500 in May 2015.

The real Bullish or Bearish Signal for me will be when we finally break the Rising Wedge Pattern ​​that started back on December 2014 and not before that. Til then, we are in a range trade situation...
​( See Second chart below ).

NYSE Summation Index: A Macro Signal : Bullish Mode ?  $SPY, $NYA #Trading #investing #NYSE #SP500
To learn more on the Summation Index : McClellan Summation Index at Stockcharts

NYSE Summation Index ( Top Panel - Dots )
7 DMA ( Blue Line )
SP500 ( Bottom Panel - SPX )​​