- A major bottom (shown by circles) in McClellan Summation Index is followed by a long term BULL rally (shown by green arrows) in the markets
- As long as market remains above/near MA(100), BULL trend remains intact
- After the initial rally, observe how McClellan Index pulls back near EMA(59) (Red line) (shown by dotted green lines) correspondingly market also experiences a pullback. After this action, market undergoes a massive BULL rally in coming months ahead
Let's not forget that nothing is guaranteed hence if market happens to drop below 7900 area then we have to be extremely cautious as this same pattern can turn into a DOUBLE TOP pattern which is considered bearish. We do not expect that scenario but its better to remain vigilant.
Market remains in strong bullish territory...