From Trade to Learn:

... Let's have a look at the McClellan Oscillators.

The Nasdaq McClellan Oscillator is touching 70. This is the fourth most overbought the NASDAQ has been in the last two years.

The NYSE McClellan Oscillator tells a similar story too. I also marked the sharp decline suffered by the markets the previous three times it reached these overbought levels.

Its obvious that the odds greatly favor a pullback here.

How to trade these markets?

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