SPY - tools for swing trading a cap-weighted index

Steven Berry

The 6 pages of charts below display cumulative Advance-Decline breadth lines
which are the cumulative total of daily net Advance-Decline values

Common Stock Only indicators for the NYSE are calculated using approx.1800 common stocks
which are operating companies within the NYSE Composite Index (funds are excluded)
CSO indicators often present a more accurate internal picture for the NYSE Composite Index
The NYSE All Issues indicators are calculated using all issues traded on the NYSE

The McClellan Oscillator is the difference between the 19-EMA & 39-EMA of daily advances minus declines.
It reflects the short-term strength and direction of market liquidity.
A longer-term view is provided by the McClellan Summation Index, which is the cumulative total of the daily McClellan Oscillator values.
These indicators move within a trading range and often identify the overbought/oversold condition of the market

( McSum = McClellan Summation Index )

the dominant rule is: price will eventually follow the direction of the McSum, except for brief periods of price divergence

The McSum is neutral at the zero line,
bullish while above,
and confirmed bearish while below zero

* the distance down to the McSum zero line currently represents
one objective measure of the minimum downside risk

Confirmed sell signals are a lasting decline below the McSum zero line,
though price action has usually declined by a large amount by the time
zero is reached from the McSum peak above.

Large distances between the McSum daily chart values represent acceleration events in the A-D breadth decline or advance,
and the follow-on price impact has a high correlation with the McSum's direction, and usually has several days staying power

000.1 - S&P 500 # of New Highs & # of New Lows


Not a bullish condition for the price action while
the High-Low differential 10 day moving avg is sloping down


what the financial media calls 'Super Thursday' this year
is GOOGL, GOOG, AMZN, INTC, and MSFT which report earnings
today after the close and
which possess heavy % portfolio weight rankings in the
symbol sets composing the major US indices & sectors

10/25 Wednesday

today's new decline low for late October did NOT print
an hourly SPY price bar which closed below its 50,2 lower Bollinger Band
or below the SPY 60-minute 133 exponential
moving average, as is evident in this SPY 60-min chart link



SPY $256.78 and S&P 500 index $2571.38 = today's pivot low which must
be surpassed on a lasting basis by future daily closes in order to void the
recent late October price action negativity
S&P 500 index $2510.00 represents potential near-term horizontal support


XLK, XLI, & XLB achieve new price highs - their collective weighting is influential on the SPY daily % price change

XLF daily PMO indicator holds above its signal line & above zero line,
both of which are required conditions for a lasting bullish price outcome
for this heavily weighted influence on the S&P 500 index

a consolidated chart set for the US indices by Erin Heim showing PMO setups is located here -
the Chart Gallery for the S&P 500 index -


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