Wednesday, August 7, 2013

NYSE breadth is failing

Just an update from June 1, 2013 and July 24, 2013 on the NYSE AD Line and just to repeat the Advance / Decline Line (AD line) is used to measure the breadth of a stock market. The AD line tracks the net difference between advancing and declining issues. It is usually compared to a market average where divergence from that average would be an early indication of a possible trend reversal

The upper plot is the S&P500 and the lower plot is the NYSE A/D line which is a worry now because of the double peaks of mid May and now. Keep an eye on that simple 20-day moving average. Yesterday’s latest break suggests a mild correction dead ahead.

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