NYSE McClellan Summation Index...falling apart
The current Divergence in the NYSE Composite Index and the McClellan Summation Index and the McClellan Oscillator have now hit "Legendary" status in my book, and I am currently looking for the kind of 'reflexivity reaction' in the NYSE which George Soros commonly sites as one of his favorite trading setups and situations. The basic hypothesis of this theory is that markets wander off in directions which then require steep and swift movements in price, which then resolve the dilemma. It is a very delicate way of saying in numbers how far off track markets are wondering.
I would venture a very good guess that both the Summation Index and Oscillator are poised for a significant plunge, which will result in dragging down NYSE prices with them. How far is anyone's guess, but the trend in place is strengthening with the passing of each trading day as both the Oscillator and Summation Index's are pointing clearly down.