Even though the NY Composite ($NYA) remains below its prior highs, the NYSE AD Line hit a new high this week and shows underlying strength. Advance-decline numbers measure the internal strength or weakness within an index. A new high in the AD Line shows internal strength that may carry thru to the index. All bullish bets are off if the NY Composite break below the mid June lows.
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Yes undoubtedly there is strength for many of these cumulative breadth indicators but the one with the best track record: NASDAQ news highs/ new lows has a bearish divergence. There are a lot of bond funds in the NYSE. How much are they spoiling that indicator?
Posted by: John Ritchie | July 03, 2012 at 06:11 PM