The McClellan Oscillator is really starting to tank, which normally means that there’s more downside ahead. It generally has to form some sort of negative divergence before the markets start to find a bottom. Add in the fact that the % of stocks above their 50ma in the Nasdaq is approaching the 20 level reaffirms the fact that the market internals are terrible. Looking at past moves below the 20 level shows that it doesn’t just go down and quickly bounce back up. It lingers there for awhile.
I’m thinking that Friday is going to be a critical day with the full moon coming. The last full moon saw the market put a top in.
Related Posts:
OE, Full Moons, and Stock Crashes
