Decoding Market Breadth: The NDX McClellan Oscillator Jumps 110 points in three sessions
This oscillator is used in the stock to measure the balance between advancing and declining stocks (A Market Breadth Indicator).
It jumped from -100, a very oversold condition, to +8.5, with price action showing weaknesses and a potential bearish reversal.
Divergences occur as with any oscillator, see the sequence of orange and green circles, both colors reflect a bottom in the index and in the oscillator, the green one is the lower price coherent with a higher low in the oscillator.
The recent bounce in the oscillator is comparable to previous ones (blue rectangle), and Nasdaq100 set a bearish reversal candle, so there are key levels to maintain, otherwise a bearish divergence would be in play and lower lows in price could be brewing:
$Invesco QQQ(QQQ)$ : $423
$NASDAQ 100(NDX)$ : $17390
$Apple(AAPL)$ : $166
$Microsoft(MSFT)$ : $402
$NVIDIA Corp(NVDA)$ : $745 is critical
$SPDR S&P 500 ETF Trust(SPY)$ : $501.4
$Tesla Motors(TSLA)$ : $154 - $156
$Alphabet(GOOGL)$ : $156
$DJIA(.DJI)$ : 37,994
$Meta Platforms, Inc.(META)$ : $418 could support price, but that gap at $406 is getting ready to be filled.
$Cboe Volatility Index(VIX)$ : Bad things above 16.8
Image
https://twitter.com/SmartReversals/status/1783290001461051888
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- nimbly·04-26Great analysis!LikeReport