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The McClellan Oscillator was developed by Sherman and Marian McClellan in 1969. It is a widely followed breadth oscillator that measures short to intermediate term trends. This volume shows the normalized version of the oscillator based on the NYSE breadth figures. Expressing breadth as a percentage of issues (rather than as the difference between advances and declines) normalizes the series for the growth in the number of issues traded.
The McClellans also developed a longer term indicator the McClellan Summation Index. It is simply the cumulation of the McClellan Oscillator values. In other words, it changes each day by the amount of the McClellan Oscillator. This volume shows the normalized version of the McClellan Summation Index.
Time Frames in Volume 7
The charts in this volume show twelve consecutive views of the S&P 500, the Normalized McClellan Oscillator and the Normalized McClellan Summation Index from 1962 to present. These are all three panel, portrait charts. The S&P 500 is drawn in the top frame on a logarithmic scale. The Normalized McClellan Oscillator is drawn in the middle frame on an arithmetic scale. We have used the same indicator scale on every Normalized McClellan Oscillator chart so that they can be compared from chart to chart. The Normalized McClellan Summation Index is drawn in the bottom frame on an arithmetic scale. All of the Normalized McClellan Summation Index charts use the same indicator scale. This allows you to compare indicator levels directly from chart to chart.
The notes describe the calculation of these indexes in detail.
Sherman and Tom McClellan write The McClellan Market Report, P.O. Box 4126, Glendale, CA 91222-0126, (818)243-7119.