Bullish Theory

Update: Intra day basis the Index is showing 2000 plus with a reading of 2022.
Mcclellan Summation Index is at 1929 currently.

Among the most significant indications given by the Summation Index are the identification of the end of a bear market and the confirmation of a new bull market. Bear markets typically end with the Summation Index below -1200. A strong rise from such a level can signal initiation of a new bull market. This is confirmed when the Summation Index rises well above +2000. Past examples of such a confirmation have resulted in bull markets lasting at least 13 months, with the average ones lasting 22-24 months.

Interpretation

The McClellan Summation Index is a long-term version of the McClellan Oscillator. Its interpretation is similar to that of the McClellan Oscillator except that it is more suited to major trend reversals.

As explained in the Calculation section, there are two methods to calculate the Summation Index. The two calculation methods create indicators with identical appearances, but their numeric values differ. These interpretational comments refer to the "suggested" calculation method explained in the Calculation section.

McClellan suggests the following rules for use with the Summation Index:

* Look for major bottoms when the Summation Index falls below -1,300.
* Look for major tops to occur when a divergence (page 29) with the market occurs above a Summation Index level of +1,600.
* The beginning of a significant bull market is indicated when the Summation Index crosses above +1,900 after moving upward more than 3,600 points from its prior low (e.g., the index moves from -1,600 to +2,000).

I am surprised with so many technical analysis junkies around why no one is focusing on this. It has one of the best logic behind it and considered very reliable by most technical analysts.