daily chart displaying cumulative net Advance-Decline lines for $SPX, $OEX, $NDX & three
other indices
stockcharts.com
1. $SPX, $OEX and $NDX Advance-Decline lines reside above the 39-day EMA, which is the less sensitive moving average of importance to correctly interpreting the chart location of any Advance-Decline line
$MID, $SML and NYSE common stocks only Advance-Decline lines reside slightly below the
39-day EMA which is a mildly bearish condition for index price action while the condition persists
2. A-D lines' 19-day EMA vs. 39-day EMA vs. 200-day EMA all possess a bullish relationship crossover chart location ... an important vigilance item for future days
3. for all the Advance-Decline lines, the pattern in June has been declining daily values since the most recent June high for the Advance-Decline lines, which is a mildly bearish condition
4. the NYSE common stocks only Advance-Decline line as of June 26 resides slightly below its April high, which is a firmly bearish condition while it lasts ... US equity bulls do not want to see the $SPX Advance-Decline line decline below its April high
FYI - the selected EMA's represent the 5% trend and the 10% trend for the Advance-Decline lines as explained by Mr. and Mrs. Sherman McClellan decades ago ... Tom McClellan elaborates:
mcoscillator.com
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McClellan Oscillator
The McClellan Oscillator is the difference between the 19-EMA & 39-EMA of daily advances minus declines.
It reflects the short-term strength and direction of market liquidity.
A longer-term view is provided by the McClellan Summation Index, which is the cumulative total of the daily McClellan Oscillator values.
These indicators move within a trading range and often identify the overbought/oversold condition of the market
McClellan Summation Index
( McSum = McClellan Summation Index )
the dominant rule is: price will eventually follow the direction of the McSum, except for brief periods of price divergence
The McSum is neutral at the zero line,
bullish while above,
and confirmed bearish while McSum resides below zero
* the distance down or up to the McSum zero line currently represents
one objective measure of the minimum movement that is possible
Confirmed sell signals are a lasting decline below the McSum zero line,
though price action has usually declined by a large amount by the time
zero is reached from the McSum peak above.
Large distances between the McSum daily chart values represent acceleration events in the A-D breadth decline or advance,
and the follow-on price impact has a high correlation with the McSum's direction, and usually has several days staying power |
