Smart Money Index: Divergences

The idea behind this SMI indicator, popularized by money manager Don Hays and existing with many variations, is that emotional trading takes place at the beginning of the trading day (as traders react to overnight news event and economic releases) while the “smart money” takes the day to evaluate price action and input their orders before the market closes.

NYSI: How Low Can It Go?

Developed by Sherman and Marian McClellan, the McClellan Summation Index is a breadth indicator derived from the McClellan Oscillator, which is a breadth indicator based on Net Advances (advancing issues less declining issues). NYSI dropped below December’18 lows this week and recorded -1183 reading on Friday. The question that I want to investigate, how low can the NYSI indicator fall?