NASI (Nasdaq) and NYSI (NYSE)

Definition:
The NASDAQ McClellan Summation Index ($NASI) and the NYSE McClellan Summartion Index ($NYSI) look at the gap between the number of advancers and decliners on the Nasdaq and NYSE to give a net positive or negative number that indicates how overbought or oversold the market on a given day.

Using the NASI and NYSE:
The NASI is very good at predicting the intermediate Nasdaq trend of about 1 - 3 months as is the NYSI for the NYSE. Buy and sell signals are triggered when the the NASI and NYSI change direction.

The NASI is very useful as a general market indicator and could be used to swing trade QQQ, NQ futures, or an agressive growth mutual fund.

The NYSI is very useful as a general market indicator for the NYSE.

Use the following as buy/sell triggers to determine a change in the NASI and NYSI trends:
1. 5 MA crossover or Parabolic SAR buy/sell signal:
2. MACD crossover:
3. Stochastics crossover of 20 for a buy signal or below 80 for a sell signal

CHART OF THE NASI:
NASI Uses the 5 MA as a buy signal, but can whipsaw quite a bit.
NASI Uses Parabolic SAR for crossovers, less sensitive than the 5 MA, Can still whipsaw quite a bit to give buy/sell signal back to back
NASI USES a wider Parabolic SAR for crossovers - Much less noise but buy/sell signals can be delayed slightly, very little whipsaw
CHARTS OF THE NYSI:
NYSI Uses the 5 MA as a buy signal, but can whipsaw quite a bit.
NYSI Uses Parabolic SAR for crossovers, less sensitive than the 5 MA, Can still whipsaw quite a bit to give buy/sell signal back to back

http://breakpointtrades.com/indicator_summation.htm