Last week, I showed an interesting chart, that hinted that the markets were going to bounce pretty strongly and possibly continue to make new highs. So far the chart has held up pretty accurately. The Price Oscillator, another indicator that I follow, recently gave a bullish signal that the makets are promised higher highs (the Price Oscillator and its rule sets were invented by Tom McClellan).
The Price Oscillator (shown below) has a neat property: When it is above 0 and it is pushed downward, if it is able to point back up again, it conveys the messages that the market will make higher highs.
This is just recently happened, note the circled portion of the Price Oscillator in black on the chart below. The Price Oscillator started to turn downward in April, and has successfully rebounded upward, making a small fish hook like structure. When this occurs this promises the market will make higher highs (if this occurs the markets could be susceptible to a nasty correction), it is important to note that this is not a guarantee. I highlighted with red arrows where the Price Oscillator did correctly forecast higher highs in the markets (pointing down above 0 then back to pointing upward).
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