The McClellan Oscillator is a market breadth indicator that uses advance-decline data to gauge price momentum. This classic technical analysis technique can help validate what you see on the chart of the S&P 500 or Nasdaq, and this week it generated a key bearish signal! We'll break down the construction of this technical indicator, and talk about downside potential for the SPX given this bearish reversal.
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The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.