SPX McClellan Osc: Breadth, Bounce, Divergence Insights
$S&P 500(.SPX)$ - McClellan Oscillator
š¢The rapid improvement in breadth compares with recent occurrences, including the beginning of November where another bredth trust was triggered. As it happened last Tuesday.
š“An immediate reversal in breadth is completely normal, May 2024 is a fresh example; and there are more in the chart.
ā¹ļøThe indicator is overheated above 70 and the opposite happens at -70, April 2024 is another recent example. Worth noting that the zero zone sometimes brings some consolidation, sometimes.
From the McClellan Oscillator perspective, there is room to reach a major bottom. Any possible bounce would come from support levels or other technicals published yesterday (click in bio).
šµAnother take from this chart is the bullish divergence seen between August and October 2023. Thereās no doubt it was painful, but itās worth remembering how the higher lows in this oscillator can contrast with lower highs in #SP500 during the coming months.
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