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Wednesday, October 18, 2017 5:27:10 PM
Trouble brewing in advance/decline lines?
By: Almanac Trader | October 18, 2017
DJIA, S&P 500 and NASDAQ all closed at new all-time highs yet again today. S&P 500 and NASDAQ just barely made it. Russell 2000 came up short. This accomplishment by the major indexes is masking a potentially ominous sign.
In the chart below, DJIA, S&P 500, NASDAQ and Russell 2000 all appear in the top pane while their corresponding advance/decline (a/d) line charts appear in the lower four panes. S&P 500 and NYSE a/d lines have been steadily trending higher since mid-August and appear to still be headed in that direction. NASDAQ and Russell 2000 a/d lines appear to have peaked earlier this month and have begun to move lower. This is of potential concern because fewer and fewer NASDAQ and Russell 2000 stocks are participating in the rally and generally what the majority of stocks do, eventually the index will do.
A similar condition existed back in mid to late-July. NASDAQ and Russell 2000 a/d lines turned lower and shortly thereafter NYSE and S&P 500 a/d lines turned. NASDAQ then slipped 3.3% from late-July to mid-August while Russell 2000 dropped 6.4% over the same time period. DJIA and S&P 500 saw milder retreats of 2% and 2.2% respectively from August 7 to 18.
http://jeffhirsch.tumblr.com/post/166545215708/trouble-brewing-in-advancedecline-lines
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By: Almanac Trader | October 18, 2017
DJIA, S&P 500 and NASDAQ all closed at new all-time highs yet again today. S&P 500 and NASDAQ just barely made it. Russell 2000 came up short. This accomplishment by the major indexes is masking a potentially ominous sign.
In the chart below, DJIA, S&P 500, NASDAQ and Russell 2000 all appear in the top pane while their corresponding advance/decline (a/d) line charts appear in the lower four panes. S&P 500 and NYSE a/d lines have been steadily trending higher since mid-August and appear to still be headed in that direction. NASDAQ and Russell 2000 a/d lines appear to have peaked earlier this month and have begun to move lower. This is of potential concern because fewer and fewer NASDAQ and Russell 2000 stocks are participating in the rally and generally what the majority of stocks do, eventually the index will do.
A similar condition existed back in mid to late-July. NASDAQ and Russell 2000 a/d lines turned lower and shortly thereafter NYSE and S&P 500 a/d lines turned. NASDAQ then slipped 3.3% from late-July to mid-August while Russell 2000 dropped 6.4% over the same time period. DJIA and S&P 500 saw milder retreats of 2% and 2.2% respectively from August 7 to 18.
http://jeffhirsch.tumblr.com/post/166545215708/trouble-brewing-in-advancedecline-lines
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Click on "In reply to", for Authors past commentaries
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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