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
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