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September 15, 2005
NDX AD Volume Line
The AD Volume Line is even weaker because it broke support and remains below broken support. This indicator is a cumulative measure of the volume in advancing stocks less the volume in declining stocks. Unless both of these indicators can make it back above their 50-day SMAs, the outlook for breadth is bearish and this will ultimately weigh on the Nasdaq 100 and by extension the S&P 500. As Greg Morris asserts, “breadth is the footprint of the market”. The AD Line represents the rank-and-file and the AD Volume Line represents the large-caps. You know that selling pressure is picking up when both are deteriorating.
Posted by Arthur B. Hill at September 15, 2005 11:17 AM