Mo Rocca is funny. Mo Rocca, in fact rocks. But MO really Rock-a's .... eeeeeaaahhhhhhh (groaning crowd at the bad pun).
Okay, I am sorry to keep harping on the one, but I am trying to hammer home the fact that the McClellan Oscillator is signaling a trend change (at least at the Minor Degree). This should be a very tradeable setup. I was pointing this out in MO(e).... MO(e).... MO(e)....., Bearish? Hell Yeah! ... But Is This The "Top"?, Mr. Plow, Rhizome and Tubers.
Let me make this more explicit why I love this chart so much. I have two fast MA's that act as triggers and then a slow MA that is a trend follower. The McClellan Oscillator is a fast indicator. So I chose the slow MA such that it flattens out at the peaks! I was messing around with this chart and the MA's about 6 months ago and found this combination, and I love it! And what is the trend MA doing right now? It has flattened!. The triggers are there to help signal that things are slowing, and that is exactly what we got last week when I was writing about the MO (ad naseum). And it wasn't until Wednesday that we figured out that the pattern was an ending diagonal (it didn't impulse higher, even though it looked like it was going to early in the week). This is powerful stuff !!!
Trendlines are showing a nice breakdown from the orange line and finding support at the blue. If the MO is telling the truth (and I think it is) then we will break the blue line next week.