Tuesday, September 30, 2014

The $NYSI closed below ZERO today:

Greg Morris, the author of "The Complete Guide to Market Breadth Indicators," says the McClellan Summation Index as the most valuable breadth indicator of the 80+ ones he researched and "is the best single indicator available. If you had to pick one this would be it."
He adds,
"Its primary component, net advances, provides an excellent measure of the market's liquidity. The direction and level of this indicator are exceptional at identifying good and bad investment climates. For example, research from PMFM, Inc. showed that whenever the McClellan Summation Index is above zero, rarely do any "bad things" happen in the market; most of the 'bad things' happen when it is below zero. This is a valuable piece of information and should be part of every analyst's technical model."
NOW, that may have been true in his time, but looking at the chart at the top over the last three years when the $NYSI has moved below ZERO it tends to be close to a BOTTOM,  hahahahahaha, it's just amazing about how this MASSIVE Government and Federal Reserve MANIPULATION of the markets has rendered PREVIOUSLY "reliable" indicators completely useless.
Wad ever, it is wad it is, maybe some thing "bad" will happen this time.

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