Friday, August 9, 2013

NYSE Advance / Decline Line swing failure

Another update on the NYSE AD Line

When you look at the current chart of the S&P500 plotted above the NYSE Advance / Decline Line (AD line) one can see two technical problems.

The first problem is the negative divergence setup between the two lines – the higher high on the S&P500 and the lower high of the A/D line. The second problem is the swing failure of the A/D line and the move below the 20 period smoothing.

A correction is underway – but the duration and magnitude is not predictable at this time.

1 comment:

SteveB said...

thanks for pointing this out

The S&P could be forming a small head and shoulders top with the peak of the left shoulder at July 24, which is also where the NYSE A/D line peaked and began to diverge downwards