Before getting into this breadth thrust, let's review the McClellan Oscillator and McClellan Summation Index. Basically, the McClellan Oscillator is the 19-day EMA of Net Advances less the 39-day EMA of Net Advances (advances less declines). Like MACD, it is a momentum oscillator for Net Advances. The McClellan Summation Index is a cumulative measure of the McClellan Oscillator. The summation index rises when the Oscillator is positive and falls when the Oscillator is negative.
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The chart above shows the Nasdaq McClellan Oscillator ($NAMO) in the lower indicator window. Notice how the oscillator surged from below -50 to above +50. This 100+ point swing from negative territory to positive territory is a bullish breadth thrust. A similar bullish thrust occurred in February. The main window shows the Nasdaq McClellan Summation Index ($NASI). Notice how it declined steadily from late April to early June as the McClellan Oscillator remained consistently negative. The bullish breadth thrust in the McClellan Oscillator pushed the Summation Index above its 10-day SMA for the first time since late April. The chart below shows the NYSE McClellan Oscillator and Summation Index for reference. You can click on these chart to see the settings.
Click this image for details
Click this image for details
The chart above shows the Nasdaq McClellan Oscillator ($NAMO) in the lower indicator window. Notice how the oscillator surged from below -50 to above +50. This 100+ point swing from negative territory to positive territory is a bullish breadth thrust. A similar bullish thrust occurred in February. The main window shows the Nasdaq McClellan Summation Index ($NASI). Notice how it declined steadily from late April to early June as the McClellan Oscillator remained consistently negative. The bullish breadth thrust in the McClellan Oscillator pushed the Summation Index above its 10-day SMA for the first time since late April. The chart below shows the NYSE McClellan Oscillator and Summation Index for reference. You can click on these chart to see the settings.
Click this image for details
