Friday, May 08, 2009

Nasdaq McClellan Oscillator Bearish Divergence

Although there are a tonne of overbought conditions in various breadth indicators the Nasdaq McClellan Oscillator as added its voice with a bearish divergence kicked off from the middle of March.

A bearish cross of the zero line in the Oscillator will coincide with a closing break of the reaction lows trendline (currently just over 1,700); good place for a trailing stop?

I have the NYSE for comparison

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.