RUT breaking down finally, back to January levels:
stockcharts.com 
DJIA At Higher Highs with Negative McClellan Oscillator
The McClellan Oscillator went below zero back on Feb. 14, and has remained negative ever since. But that has not stopped the major averages from moving up to new multi-year highs.
Having the Oscillator drop below zero can sometimes be seen as a "sell signal", but it depends on what else is happening in the market. It is certainly not a positive factor to have higher price highs appear while the Oscillator refuses to confirm that strength.
You can see in this week's chart that some of the instances of a higher price high with a negative Oscillator reading have marked really important tops. Other times, though, these instances have not stopped the market's advance. So like the Hindenburg Omen, this occurrence serves as a warning of trouble, but not a guarantee that a top is in.
mcoscillator.com |
