ORIGINAL POST:
The McClellan Oscillator has a nice track record of alerting us to impending swoons. A system of fan lines drawn from its May 18 low have been especially helpful.
Note how each rebound off a fan line led to bottom and/or higher prices, while breaks through the fan lines led to substantially lower prices. Yesterday’s close represents a back test of the last fan line. If the pattern holds, it lends credence to our current short position.
Be cautious, though, as NYA and COMP need another .50% of additional upside to complete their Gartley Patterns. And, SPX would benefit greatly from a tag of its 2007 fan line from 1576 — currently at 1411 or so.
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