We have been perusing the Advance-Decline Line charts that now we have and observed one thing that shocked us. The Nasdaq Advance-Decline Line is trending decrease whereas costs proceed increased. That is unfavorable divergence we did not anticipate to see.
What makes that unfavorable divergence much more attention-grabbing is trying on the similar Advance-Decline Traces for the SPX and NYSE. Discover there isn’t any unfavorable divergence in any respect, if something we see confirmations of the rallies each are experiencing.
Conclusion: We have not seen any points with the Nasdaq rally, however this unfavorable divergence might be signaling that the Nasdaq would be the first to indicate worth weak point.
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Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside together with her father, Carl Swenlin. She launched the DecisionPoint day by day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an energetic Member of the CMT Affiliation. She holds a Grasp’s diploma in Info Useful resource Administration from the Air Pressure Institute of Expertise in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.
