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Stocks stabilized on Tuesday and positive A/D numbers on the NYSE have caused the McClellan Oscillator to turn higher. It has formed a positive divergence on both the NYSE and Nasdaq, but needs a strong move back above the zero line and trend line resistance to complete the short-term bottom formation. If a bottom is completed, we should get a rally back to 1110-1130 on the S&P and 2300-2340 on the Nasdaq. A close back above their still rising 200-day MAs would be positive.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
