McClellan Oscillator above zero in NYSE but negative divergence persists

The NYSE McClellan Oscillator moved back over zero again. But it's showing negative divergence to price. Some has technical sell on equities, it depends on how you read the big picture. Well either equities will poke a new high, or not. Today was Weird Wallie Wednesday, if that made a difference. Equities bulls once again must defend yesterdays low, or risk more technical sell signals.

Stockcharts.com wasn't available due to technical problems, so I got the chart right from McClellan folks themselves -

Source: http://www.mcoscillator.com/market_breadth_data/

, where they also provide: Stock Market Breadth Data | Daily Oscillator Data

The McClellan Oscillator & Summation Index - Technical Analysis Learning - McClellan Financial is a webpage where you can learn more on what these charts offer; at http://www.mcoscillator.com/learning_center/kb/mcclellan_oscillator/the_mcclellan_oscillator_summation_index/. They point out, don't look only at the absolute value but also at the chart structure. Here's another quote:

The McClellan Oscillator offers many types of structures for interpretation, but there are two main ones. First, when the Oscillator is positive, it generally portrays money coming into the market; conversely, when it is negative, it reflects money leaving the market. Second, when the Oscillator reaches extreme readings, it can reflect an overbought or oversold condition.

While these two characteristics are very important, they merely scratch the surface of what interpreting the Oscillator can reveal about the stock market. Many more important structures are outlined in the book Patterns For Profit by Sherman and Marian McClellan, available from McClellan Financial Publications.

By adding up all of the daily values of the McClellan Oscillator, one can produce an indicator known as the McClellan Summation Index. It is the basis for intermediate and long term interpretation of the stock market's direction and power. When properly calculated and calibrated, it is neutral at the +1000 level.