There has been a lot of curiosity and interest revolving around the McClellan oscillator and the past two weeks we have been receiving a couple of emails everyday on it’s working.
In his post dated 28th November, Shai has explained the working of this great indicator of market sentiment and I would encourage all to read that post as it contains all the relevant information. You can find that post here
After hitting a reading of -108 on the 26th of November, the oscillator jumped to a reading of +33 and in the process the Nifty went from 5690 to 6069.
Here’s the updated chart :
The McClellan registered a reading of -50 at the close today. So sentiment is not all that bearish as people make it out to be. The oscillator gets interesting once we trade below -80.