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Though Wednesday’s rebound was positive, the Advance/Decline (A/D) ratios for both the NYSE and Nasdaq were negative. Even though the market has continued to edge higher, the McClellan Oscillator, a short-term A/D indicator, has continued to decline. It is below the zero line and a drop below the -100 level would be even more negative. The NYSE has good support now at 7200 with first strong support in the S&P 500 at 1150. The Summation Index has also flattened out and a drop below its weighted moving average (WMA) would be consistent with a correction.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
