The McClellan oscillator is a very reliable indicator that signals market bottoms. Although these charts aren’t perfectly lined up, you can see that when the McClellan gets below -100, rallies soon follow.

The McClellan oscillator is currently at its lowest level in years. It’s even lower than it was at the March 2009 low. It would be foolish to short here, and the futures are currently moving strongly up. So it looks like a big gap up Monday morning in the US markets. Will it hold?

So this means buy, buy, buy, right? Unfortunately, so many charts are damamged,  it’s hard to find good setups. It’s going to take some time for these charts to base. This requires some patience, and I plan to be more disciplined here, and will probably look to day trade tomorrow. See my lesson on how I day trade the 3X ETF’s. I use the same setups for stocks.

For now, I am in cash and observing. Not fun, but not the worst position to be in. Here are a couple of charts I think look ok for a bounce play, but I don’t plan to take them unless the setups for good on Monday. Only looking to day trade right now until charts start looking better.



Good luck and good trading!