Note how the advances minus declines for the NYSE deteriorated (bottom chart) prior to the stock market's selloff. Generally, if a rally cannot sustain more than 1000 advancers over decliners, it will turn out to be more of a range trade. Observe also how, even after the selloff, we could not sustain a plurality of decliners over advancers, preventing the day from turning into a big downside reversal session.
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3 comments:
Brett,
Not sure I see the $add as predictive. esz09 was down a point and tanking before the $add dropped big.
Brett,
Ditto with kuch's comment. I too track the $ADD and it did not lead but rather moved in roughly in tandem with the ES price breakdown. Perhaps your chart time legends are misaligned just a tad in the post.
My interpretation is the lower lows and highs (deterioration) in $ADD diverage from ES price prior to drop.
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