For the first time in a couple of months we are starting to see bullish developments in the market indicators. The McClellan Oscillator and its components have finally made a rising lows pattern and are diverging bullishly from the SPX price which made lower lows. In addition, on the recent low, the 10% indicator held above the -500 threshold which is a necessary condition to establish a bottoming pattern. What I would like to see next would be a rise above +500 for the 10% Index as a confirmation that the market has enough power to establish a new leg up.
The McClellan Oscillator with a bullish divergence from price. Click to enlarge.
The percentage of stocks above their moving average. Click to enlarge.