Saturday, July 25, 2015 12:26:26 PM
NYAD LINE
NYSE ADVANCE-DECLINE LINE BREAKS 200-DAY AVERAGE... My Wednesday message showed the NYSE Advance-Decline line dropping since April, and diverging from large cap stock indexes like the S&P 500. Chart 7 shows the NYAD line undercutting its July low to end at the lowest level in six months. It has also fallen below its 200-day moving average for the first time since 2011. Another sign of deterioration in the broader market was the fact that 399 big board stocks fell to 52-week lows on Friday versus only 31 new highs (a downside ratio of -12%). That increases the odds for bigger losses in popular stock indexes. I mentioned on Thursday that stocks are also entering the more dangerous months of August and September when losses are more likely.
BY JOHN MURPHY
NYSE ADVANCE-DECLINE LINE BREAKS 200-DAY AVERAGE... My Wednesday message showed the NYSE Advance-Decline line dropping since April, and diverging from large cap stock indexes like the S&P 500. Chart 7 shows the NYAD line undercutting its July low to end at the lowest level in six months. It has also fallen below its 200-day moving average for the first time since 2011. Another sign of deterioration in the broader market was the fact that 399 big board stocks fell to 52-week lows on Friday versus only 31 new highs (a downside ratio of -12%). That increases the odds for bigger losses in popular stock indexes. I mentioned on Thursday that stocks are also entering the more dangerous months of August and September when losses are more likely.
BY JOHN MURPHY
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