Click to Enlarge
Most of the major averages reversed in the afternoon to close lower on Wednesday, but the A/D ratios did close positive on both the NYSE and Nasdaq. It was also a good sign that the S&P 400 and S&P 600 were able to close higher on the day. Clearly, the tug of war continues. The McClellan Oscillator on the Nasdaq shows a positive divergence, unlike the NYSE. A strong move above the zero line and the downtrend is needed to confirm the divergence and signal a stronger rebound.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
