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NYSE McClellan Oscillator & Summation Index
The NYSE McClellan Oscillator is a breadth-based indicator that
measures the difference between a 39 and 19 day exponential moving
average of the net differential of NYSE advancing issues minus declining
issues. The chart below is ratio adjusted. Generally, the oscillator
moves between +50 (overbought) and -50 (oversold). Buy signals come when
the oscillator is in oversold territory and makes a series of higher
lows while price makes a series of lower lows, while sells come when the
oscillator is in overbought territory and proceeds to make a series of
lower highs while price manages higher highs.
 The NYSE McClellan Summation is a longer-term version of the McClellan Oscillator and is more suited to major trend reversals. It is calculated by simply keeping a running total of the NYSE McClellan Oscillator. A rising Summation Index indicates the overall breadth trend is bullish, which should correspond with generally rising prices, while a falling Summation Index indicates negative breadth trend and generally coincides with a steadily falling market.
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