jims, I have to disagree here.
DPoint has a McCellan based on volume, and it is the one I use. I think it more valid than the traditional approach, that you displayed.
It is bearish, very bearish imo. One can use the summation indexes assist in doing some EW work. Plus the absolute magnitude of the summation index is not that important. In regard to using the McClellan as a stand alone device I place most emphasis on the patterns of the oscillator. I like to look at the 5 and 10 % indicators as well. These tell you more about where the future lies than the summation index. The summation index is confirmation of trend changes.
If you look at several of the market technicals, ARMS, McClellans, VIX, Put/Calls, Sentiment, plus some other DPoint oscillators, and then take all that and do some EW, the picture is very bearish imho. It has been for some time.
It is a little early to say, but most of the indexes are in sync, and started down 1st of Dec. My EW count has that point as a most probable beginning of a 1 of 3 of C down. The recent peak would be the end of the 2. |
