The New York Stock Exchage Summation Index is the running total of the NYSE McClellan Oscillator. It is an oscillator itself moving above and below 0 but slower than the McClellan Oscillator. Since it's moving slower than the McClellan Oscillator it is used for medium and long-term timing. Recently the NYSE Summation Index moved below 0. There is also a divergence between NYA, The NYSE Composit Index and the Summation Index.
$SPXADP is the Advance-Decline Percent Index for the S&P 500. It's a breadth indicator that measures the percentage of Net Advances after the Market Close. It's calculated as follows:
AD Percent = (Advances Less Declines) / Total Issues * 100
The Advance-Decline Percent fluctuates between 100% and -100%. 100% means that all stocks in the group in this case the S&P 500 advanced. The AD Percent chart is very choppy so to use a moving average to smooth it out makes sense. The chart below shows %SPXADP with the 21 period moving average. The -3% and 3% horizontal lines separate the bearish and bullish zones. Moving below -3% the bearish treshhold would be bearish for the S%P 500.
$NYSI is the McClellan summation index of the NYSE . It’s a breadth indicator and is calculated from the McClellan Oscillator. It is simple the running total of the McClellan Oscillator. $NYSI rises when $NYMO the McClellan Oscillator of the NYSE is positive and falls when it’s negative. Remember $NYMO is calculated from the net advances on the NYSE.
The Summation Index is also an oscillator, it moves above and below the zero line. When the Summation Index stays above zero and rising it’s bullish and when falling and below zero is bearish.
The McClellan Oscillator can be used for shorter-term trading and the Summation Index for medium and long-term trading.
Divergences between the Summation Index and the Index itself can warn us of a possible correction or trend reversal.
The chart below shows the Summation Index for the New York Stock Exchange with the NYSE index. There has been a divergence between the two since February. $NYSI is declining and stays below the 5 period simple moving average.
The McClellan oscillator is a breadth indicator calculated from advances and declines for the New York Stock Exchange or the NASDAQ. First the Ration Adjusted Net Advance is calculated:
RANA = (Advances – Declines)/ (Advances + Declines)
Then the 39-day EMA and 19-day EMA is calculated. Finally the 39-day EMA is subtracted from the 19-day EMA. This final calculation makes the McClellan indicator a momentum indicator similar to MACD.
The McClellan indicator oscillates between positive and negative territory, positive being bullish and negative being bearish. In a strong uptrend it can stay positive for a longer period of time and negative in a strong downtrend. Divergences can be used for the McClellan oscillator just like for MACD.
The chart below shows the McClellan oscillator for the NYSE. If the S&P 500 would have a McClellan oscillator it would be probably similar. As you can see the McClellan oscillator is currently in the red (negative) area, which is bearish. Also there was a noticeable divergence earlier in March when the market moved higher but $NYMO only reached a lower high.