THE McCLELLAN OSCILLATOR TURNED POSITIVE THIS WEEK -- THAT'S BOOSTING THE McCLELLAN SUMMATION INDEX AND KEEPING ITS 2019 UPTREND INTACT -- BOTH ARE MEASURES OF MARKET BREADTH

BOTH McCLELLAN BREATH INDICATORS TURN UP...  Chart 1 includes two breadth indicators that work together.   Both are compared to the NYSE Composite Index (upper box).  The dashed line in the lower part of the chart plots the McClellan Summation Index.  That's a long term measure of market breadth.  [See explanation of both indicators below]  The Summation Index is positive when it's above the zero line.   Drops below that zero line are negative.  The last time that happened was during the fourth quarter of last year.   Crossings above the zero line are positive signals.  That happened at the start of this year.   The line has been dropping over the past three months, but remains above its zero line.   But it's starting to rebound.  This is where the McClellan Oscillator comes into play.

The middle line in Chart 1 is the McClellan Oscillator.    That's a short-term measure of market breadth.   The two lines work together.    Oscillator moves below zero cause the Summation Index to drop.  The Oscillator has spent most of last three months below zero which caused the Summation Index to weaken.  Oscillator moves above zero turn the Summation Index higher.   And that happened this week.   [You can see that more clearly by the small box to the right of the chart which magnifies recent turns].  The upturn in the McClellan Oscillator is boosting its Summation Index, and signals that the market 2019 market uptrend remains intact.

FOOTNOTE... The McClellan Oscillator is based on net advances of daily stock gainers minus daily losers.  It's derived by subtracting a 39-day EMA of net advances from its 19-day EMA.  It's a short-term momentum indicator of market breadth.  The McClellan Summation Index is a running cumulative total of the Oscillator.  And is a longer-term measure of NYSE breadth.  Both indicators were developed by Sherman and Marian McClellan.  Please see ChartSchool for a more in-depth explanation.

Chart 1