Update on Oct 1st (the sequester day)

The current corrective phase is at the mercy of politics> The cycles and othe indicators suggest another week of choppy behavior.

The McClellan Oscillator and SUM Index

This is in a minor corrective phase within an uptrend

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The S&P 500 index with 15 day cycle

The Nasdaq Composite index with 15 day cycle

The QQQ with 15 day cycle (10/2 close)

Oversold- Working on a bottom

A long term chart of the McClellan Oscillator and Summation Index In oversold territory but I expect more choppy action, possibly lower lows before a reversal.

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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.

Overbought but still bullish

The NYSE McClellan Oscillator at the 5/17 close
Click to enlarge