This might come a a surprise to some of you readers out there. Though the markets have just gone higher since the McClellan Oscillator - one of the oscillators used to identify overbought and oversold market conditions - made its high two weeks ago, the oscillator has turned sharply lower.
As I had pointed back then, the oscillator was at its third most overbought condition in the last two years back then. Since then, the markets have chopped and churned higher, but the oscillator has worked off the extreme overbought conditions and is in fact, negative now. The charts below show NYSE and NSDAQ McClellan Oscillators with S&P and QQQQ in the background respectively.
I will be back tomorrow with some charts to keep an eye on tomorrow. Hope you readers are enjoying your weekend!