Chart Ideas

[rimshot]

cumulative NYSE Advance-Decline line (NYAD) with the NYMO and NYSI -

* when a trader uses this data in the most simple manner,
the current decline by breadth as represented by the NYAD
provides the perspective that corrective activity is potentially terminated
when the cumulative NYAD recaptures and holds its 10% trend
(10% trend is the slower moving average shown on this chart / 5% trend is the faster moving average)

* notice that is has been a much longer time than usual for which
the cumulative NYAD has not re-visited the 200-day ema...
based on decades of history, a trader must at least be aware of this observation

* bulls want to see the NYMO hold above its -54 prior bullish divergence value which is the June, 2010, low

* bulls want to see NYSI hold above the +350 value, which has generally represented horizontal support,
while +288 represents the top of a prior downside acceleration gap and is now "gap support" ...
this gap support value has been proven to be operative one time in the declining sequences when
it actually defined the low for the August to September, 2010, decline.



this second chart for the daily NYAD,
which I have smoothed with the 8-day moving average
is designed to minimize signal whipsaw when
using the daily values for the NYAD...you
can easily see that the smoothed NYAD is bouncing
from a relatively oversold level and that only
future positive daily breadth postings will determine
whether daily breadth will actually establish a rising
trend.

* the NYSI +350 horizontal support level is clearly visible
in this chart