Monday, August 19, 2013

Oversold and dangerous

At Mondays close the McClellan Oscillator is retesting the recent lows with the 10% Index going well below -500. This indicates that any rally will be followed by another retest of the current lows. In all likelihood the major induce will retest their 200 day moving averages. Caution is warranted.

Oversold but dicey

The McClellan Oscillator is in the oversold zone in an apparent retest of the last low where the 10% Index went below -500. It would be most constructive if the market rallies Monday 8/19 and keeps the 10% Index above the -500 level.