Weekly Stock Market Update: 5 Reasons For The Rally

$NYMO (McClellan Oscillator): 

After trying to move towards the zero line, the McClellan Oscillator (NYMO) ended the week -33.40 after being -105 the prior week intraday. The McClellan Oscillator is oversold but has room to go much lower, if need be.

$NYSI (not shown) continues to fall. Still no turn yet.

nymo chart mcclellan oscillator bullish december 21

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VIX:VXV Ratio (Volatility Term Structure):

The VXV is the 3 month volatility index. The relationship between VXV and VIX (30 day volatility) or the ratio between them if > 1.00 often spells trouble for equities.

As mentioned in the multi-year view from inception, this ratio moved lower towards the neutral zone at 0.9126 but has ever since made a turn higher. It ended the week at 0.974.  Any turn that is made from this neutral zone can be tricky. Perhaps volatility is here to stay a bit. Keep an eye on what this does. Watch that VIX!

vix vxv volatility term structure chart december 21

You can read more of my weekly analysis on my website.  Thanks for reading and have a great week.


Twitter: @sssvenky

The author has a position in S&P 500 related securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.