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Market Breadth Analysis
Market commentary is provided in the first chart and a summary of recent MTI signals can be found in the second chart. The charts that follow are for each of the individual indicators that make up the Composite.
* Both the ratio and CCI must be in agreement for new signal.
Breadth Indicator: The McClellan Summation Index is a breadth indicator derived the McClellan Oscillator, which is a breadth indicator based on Net Advances (advancing issues less declining issues). The Summation Index is simply a running total of the McClellan Oscillator values.
1/17/2017 -- The breadth surge of 11/9 has ended as the McClellan Momentum Oscillator ($NYMO) has dropped decisively below the McClellan Summation Index ($NYSI). Accordingly, traders are advised to sell the positions they bought on 11/10/2016. Depending upon which fund you purchased, resulting gains were 25% for URTY and 19% for UWM.
11/09/2016 -- A rare setup occurred today as the McClellan Momentum Oscillator ($NYMO) surged above the McClellan Summation Index ($NYSI). This indicates a characteristic surge in the number of advancing stocks, which indicates the start of a new rally. My research shows these setups are profitable more often than not. Traders are advised to go long leveraged index funds and hold until this condition ends. Small-caps currently lead large-caps so the recommended ETF's for the Russell 2000 are UWM (2x) and URTY (3x).
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