Wednesday, January 21, 2009

The MCO is suggesting a reversal here.

If we get some follow through in the next few days, the McClellan Oscillator is suggesting we may be making a major reversal in the indexes. So far we have a test of the recent price lows with market breadth, as measured by the advance-decline oscillators, is NOT confirming the low.

This, accompanied by the recent high reading on both the MCO and 10% Index is an event which has not occurred for over a year and suggests to me that the markets are indeed going higher.

The McClellan Oscillator for Wed 1-21-09
Click to enlarge

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