SUMMATION INDEX

Definition: provided by

"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"