The McClellan Oscillator closed over 300 on Monday. That’s the highest level since the burst of buying off of the March 2009 low. But even back then, it triggered a pullback. The Mac OS was last over 300 on March 18, 2009, and the SPX dropped 26 points over the next two days. And when you combine that with the narrow-range NR7 days that SPY, QQQQ, and DIA printed on Monday, one would do well to be alert for an elevator ride down sometime soon. And another bearish indication is that TLT made a 9/36/15 cross-up just before the close.
Tuesday’s Trading – 7/27/2010