Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

McClellan Oscillator Leaves a Simple Structure Above Zero

by October 14, 2023
October 14, 2023
McClellan Oscillator Leaves a Simple Structure Above Zero

As we are looking for when the normal seasonal low is going to arrive, what we want to see is either a juicy oversold condition that one can buy into or a confirmation of a new uptrend getting started. Or both. We did not get as juicy of an oversold condition as I would have liked, but the stock market started up anyway, and even took the NYSE’s McClellan A-D Oscillator up above its zero neutral level.

Now, however, the Oscillator has fallen back down through zero as of Friday, Oct. 13, 2023, and the manner of this brief trip above zero has additional information for us to learn from.

At an elementary level, the Oscillator is bullish when it is above zero and bearish when below zero. And it can get to overbought and oversold extremes. At the next level of learning, we find that there is additional information available from the patterns that the Oscillator forms. And the simplest of these is to evaluate whether there is a “simple” or “complex” structure.

A complex structure is one that involves chopping up and down on one side of the zero line without crossing that line. Complex structures convey a message of strength for the side of zero on which they form. This can be bullish strength if above zero, or bearish strength if below. That message of strength remains in effect until either there is a divergence relative to prices or it gets refuted by a subsequent structure.

A simple structure sees the Oscillator move across zero and then back again, without building any complexity. A simple structure says that side is weak. Sometimes you can see alternating simple structures on both sides of zero, saying that neither side is in charge.

This latest trip above zero can now be declared to be a simple structure, now that the Oscillator has dropped back below the zero line. The message is that the initial attempt to start a bullish seasonal up move was perhaps started too early, before all the troops were in formation and ready to march. Seeing the structure above zero as a simple one does not necessarily mean that the bears are in control; it just means that the bulls are not, and the bears have a chance now to try their hand.

If we see the Oscillator jump back up above zero again soon, that would mean this dip below zero is a simple one, which cancels the message of the prior complex structure below zero. And that would be a moment to say that the bulls have a chance once again to see if they can get something started.

You can see a chart of the NYSE’s McClellan A-D Oscillator every day on our web site’s Market Breadth Data page. And if you want to learn more about what the Oscillator’s patterns can tell us, check out Sherman and Marian McClellan’s original book, Patterns For Profit, available in electronic form here.

0
FacebookTwitterGoogle +Pinterest
previous post
MEM TV: Markets Stall As Week Progresses – Here’s Why
next post
Stock Market Rally Fizzles – What to Do Now

You may also like

This is the #1 Options Income Strategy You...

May 13, 2024

Deciphering Gold’s (GLD) Signals: Is Now the Time...

February 2, 2024

A Debit Spread in American Express to Add...

June 14, 2024

An Award Announcement With a Dash of Market...

October 17, 2023

Bitcoin Futures Open Interest Spike

November 4, 2023

DP Trading Room: Spotlight on Mega-Cap Earnings

July 29, 2024

Distribution Alert: QQQ Looks Top-Heavy as Energy Stocks...

August 6, 2023

Battle of the Elders: Grandpa Russell 2000 v....

May 23, 2023

DP Trading Room: Equal-Weight Losing Against Cap-Weight SPY

June 10, 2024

Pullback Finding Support

March 3, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Rescissions: A Small but Welcome Step Toward Spending Discipline

      June 5, 2025
    • DAVID MARCUS: Why Navy ships should not be named for gay rights icons

      June 5, 2025
    • GREGG JARRETT: Biden, the ‘marionette president; and the case of the runaway autopen

      June 5, 2025
    • Trump Practically Bans Travel and Immigration from 12 Countries with Flimsy Security Justifications

      June 5, 2025
    • ‘He’s not a big factor’: Trump’s Senate allies dismiss Elon Musk’s calls to ‘kill the bill’

      June 5, 2025
    • Fears grow that Tata Steel could be excluded from Starmer-Trump trade deal

      June 5, 2025

    Categories

    • Business (8,147)
    • Investing (2,008)
    • Politics (15,523)
    • Stocks (3,127)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved