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April 24, 2006
NDX Breadth Turns Sour
Was Tuesday’s big surge a fluke or the start of a new leg higher? The gains held Wednesday and Thursday, but the Nasdaq fell apart on Friday. AD Volume Net% moved below –50% for the fourth time this month (gray oval) and this is not a good sign at all. From a breadth standpoint, Tuesday’s surge failed big time. The McClellan Oscillator and McClellan Summation Index both moved into negative territory (red ovals). These bearish signals should not happen after such strength on Tuesday and this is bearish for breadth.
You can see breadth charts like this for 80+ ETFs at ETFInvestmentOutlook.com (click here)
Posted by Arthur B. Hill at April 24, 2006 03:27 PM