Note by Mosaic Asset Company on Substack: "Another oversold breadth metric is showing up with the NYSE McClellan Oscillator. This metric compares advancing and declining stocks on the NYSE over a trailing period, and is near the lowest levels of the past couple years as you can see in the bottom panel of the chart below…"

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Another oversold breadth metric is showing up with the NYSE McClellan Oscillator.

This metric compares advancing and declining stocks on the NYSE over a trailing period, and is near the lowest levels of the past couple years as you can see in the bottom panel of the chart below compared to the S&P 500 in the top panel.

Ideally with this type of breadth metric, you start to see positive divergences where the average stock holds up better than the indexes like the S&P 500…similar to what transpired leading up to the October rally.

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