This Could Be Time To Hedge Up
$SPY markets don’t look too out of line today based only on price action but underneath the surface there’s a bit more selling pressure than meets the eye. This was part of the daily note I send to subscribers this morning.
Take a look at this chart here of the McClellan Oscillator and notice where we are today. We’re thrusting below the zero line for the first time since since February 12th. Yes we did briefly trade to slightly negative levels on March 24th / 28th but notice it was barely below zero. This time, looks a bit different.
What should you do with this type of information? Unfortunately, the best answer I can give you is it depends. Like most indicators, this should be used to give you additional context about the market environment, not a holy grail signal.
I was pretty bullish this weekend in my weekend market recap, and it’s this type of new information which helps me adjust my bias.
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