A/D line giving warning signals?

The advance/decline line (A/D) plots changes in the value of the advance-decline index over a certain time period -daily, weekly, or even monthly- and is used to confirm the strength of a current trend and its likelihood of reversing. If the slope of the A/D line is up and the market is trending up too,…

Market breadth is getting very oversold again: can we expect another bounce or a meaningful rally soon?

Six weeks ago we observed market breadth (simple put the difference between the number of stocks advancing or declining on any given day; i.e. market breadth is negative when more stocks decline then advance and vice versa) was getting very oversold and forecasted either a bounce followed by lower prices or a meaningful rally was to…

2001 and 2008 all over again?

Many have wondered if it is 2008 all over again. Some say yes, others say resolutely no. Here we simple look at the facts and data.  Figure 1 shows the S&P500 from late 2007 through mid 2008 in the top right, while the lower left shows the SPX from mid-2015 through early 2016. Fig 1: Early…