SPX McClellan Oscillator - A significant divergence with price
This technical analysis tool measures market breadth by focusing on the advancing and declining issues, in this case for $S&P 500(.SPX)$ .
The oscillator tracks the difference between the number of advancing stocks and declining stocks on a daily basis.
Market breadth is important in trading because it helps to understand the health and direction of the overall market.
The yellow arrows present how this indicator has bounced with the index following local bottoms.
The current level seen in the oscillator shows a significant divergence with price that speaks by itself about how weak is the market. The oscillator has bounced even less than Oct 2023 in the middle of a correction.
A divergence is a warning, not a timed signal, so it's worth watching the potential top daily candles presented by $DJIA(.DJI)$ $NASDAQ 100(NDX)$ $S&P 500(.SPX)$. All of them posted after the market closed.
Price action is usually the signal.
$SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$
Image
https://x.com/SmartReversals/status/1799522731106488385
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.
