Friday, January 11, 2013
Summation Index Climbs Higher
One of the main reasons to remain optimistic on the market is that breadth continues to expand. Today, $NYSI (the McClellan Summation Index) closed above 700. As the chart below shows, when summation becomes oversold (below -500) and then climbs back above 500, market indices usually continue to climb higher. That is the current situation.
The chart below is from the excellent website, McClellan Financial. I recommend bookmarking it.