McClellan Oscillator, Super Overbought

The McClellan Oscillator hit the highest overbought reading in more than 3 years. Today's reading blasted past even the last record reading of 99.46.

Historically, only the largest spikes presented tradable countertrend opportunities and there was a lag of several days from the spike to the actual turning point in the index. This worked for both long and short trades.

The current overbought reading is higher even than all the readings during the last Bull market...

The best way to use this indicator is in conjuction with a whole bunch more. For example, although the market is off to a Good Start to the Year, Beware the Bear Wedge and notice The Bullish Percent Index, Flashing Warnings Signs.

If you’re thinking, “What the deuce is the McClellan Oscillator?” click here.