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
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Overbought - but Fueled by the FED

Don't fight the FED. Low interest rates will continue to fuel higher stock prices. The supply-demand pundits have not taken into account trillions of dollars currently invested in the bond market as further fuel for this rally. Money seeking better returns will continue to migrate into the stock market.

2Year AD Line and McClellan Summation Index — So far the AD Line has stayed below the 3 STDEV Bollinger Band which I view as overbought but constructive for continuation of the upward trend. Expect a correction and a retest of the highs.

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AD Line and McClellan Summation Index from mid 2006 showing the breakdown in the AD Line and SUM Index, At the present these indicators are giving no signs of a top.

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