And there is hardly any sign of either – the stall or a fall – as index breakouts begin (or continue) everywhere.
Hard to believe this rally, much like the post-Brexit rally but here it is, the same marching song, with the lows above the lows on the NYMO, McClellan Oscillator (green circles on the chart below), tapping out the same beat while the rising NYSI, the McClellan Summation Index, plays the baseline.
Needless to say this has been a spectacular rally since the NYMO first turned up (at the end of that nine-day October decline) on 11/03. Among the 3x-leveraged ETFs I’ve written about off and on here for years, TNA is up 47 percent from there; TQQQ up 12.3 percent; UPRO up 16.5 percent; XIV 31.5 percent; and as to sectors, BIB up 33.5 percent; FAS up 30 percent; SOXL up 28.6 percent and ERX up 22.2 percent. If one had to guess, it would be TQQQ catching up to the others going forward.
From the last upturn in the NYSI posted here in my “IT RHYMES” thread (see an updated second chart below), TNA is up 6.3 percent; TQQQ up 6.8 percent; and XIV up 13 percent.
Once again, the wonders of breadth as monitored by the McClellan Oscillator.
If the bears have any hope at this point it is the possible choppiness that may come up Tuesday and through the holiday, and could surprise with more downside than I’m suspecting, but after that I believe the market continues its march higher into the Santa-Claus rally.
(right click on the chart for a larger view)