Did some work on breath indicators tonight and interesting how well the McClellan oscillator worked with divergence to find the bottom in the recent SPX sell off. From Investopedia: What Is the McClellan Oscillator? The McClellan Oscillator is a market breadth indicator that is based on the difference between the number of advancing and declining issues on a...
Using the NYA and the mcclellan Oscillator, it seems that we could get some consolidation before the next move higher or lower.
I was not looking for a bottom in the SP500, but for Relative Strength in Gold with the relative Strength line from Trader Lion´s Indicator, on the weekly timeframe. Yet I noticed that the last peak in Relative Strength in Gold was on march 16th 2020. This made me curious so I went back and looked at all RS Peaks from 2008 till now, and they all coincided with...
The 2 most important internals we can measure are sentiment and breadth . Sentiment is going higher, but breadth is starting to show cracks. The are many breadth measures, including: McClellan Oscillator, advancers vs decliners, equal weights. Both had been holding up very well; however, the breadth is starting to show downtrends, suggesting we are due for...
Three simple reasons why markets are still broken and why I lean towards the much higher probability of another move down despite FED stimulus: 1) Garbage prospects for equity earnings - earnings were terrible a long time before COVID-19 hit and this is way beyond a virus now: -Earnings were terrible way before COVID-19 -Q4 2019 was the worst fall in EPS....