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The NYMO is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term. The McClellan Summation Index is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise. Continue to Concluding Remarks
Per ETF Digest subscriber David Hurwitz, we did have a 90% down day as shown below: And, finally, today's results put to rest the trend since April, 2009 in which the first session of the month was a sharp up day as shown below: So much for all the hype Tuesday for everyone to ignore the bad economic news as Wednesday put that to rest. One prominent poster at Yahoo Finance suggested it's not the data. Rather it's about the following: "Today's sell-off is about two things: 1. It's a short week during the summer; a few leviathans can move markets without it "meaning" much of anything. 2. The market is in a negatively biased trading range. 1,340 is now very obviously resistance and 1,300-ish is support." But, what do you make of the heavy volume? I found his reasoning strange but who knows what will happen next? Thursday is Jobless Claims followed by Friday's big employment report. The economy is weakening period. This will affect earnings negatively and that's that. Let's see what happens. Disclaimer: The ETF Digest maintains active ETF trading portfolio and a wide selection of ETFs away from portfolios in an independent listing. Current positions if any are embedded within charts. Our Lazy & Hedged Lazy Portfolios maintain the follow positions: VT, MGV, BND, BSV, VGT, VWO, VNO, IAU, DJCI, DJP, VMBS, VIG, ILF, EWA, IEV, EWC, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIQ, TUR, & VNM. The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security. Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com .