Making Proper Readings of the McClellan Summation Index (McClellan Market Report)

rnc505 — Wed, 03 Mar 2010 17:10:24 +0000

We have recently seen reports calling the January 2010 Summation Index high a “major divergence”, since it was lower than the prior high made on Sep. 22, 2009. It is true that this is a divergence, since the price high was higher and the Summation Index high was lower, but the interpretive implications are not as dire as one might think. For long term comparisons, we like to use the Ratio Adjusted Summation Index (RASI). This version factors out the changes in the number of issues traded, so that amplitudes can be more fairly compared.

Cubefield Game » interpretive

Making Proper Readings of the McClellan Summation Index (McClellan Market Report)