NYAD NYSE Advance-Decline Daily Chart

NYAD advance-decline chart shows the 10 MA above the 21 MA before a down move in the markets occur. As broad markets are sold off, such as in November, the 10 MA drops way under the 21 MA signifying that the selling is strong and should come to an end soon. This behavior continues along with March showing that the selling in the indexes, including the NYA, was finishing up and a bounce should occur. Now the 10 MA is in nosebleed territory above the 21 MA indicating that the buying is finishing up now and the indexes should sell off again.

For the late February to mid March sell off in the indexes, the line above shows how the decline numbers improved, signaling that the selling was finishing up. For the last three weeks, we now see price continuing up in the indexes but the corresponding red circles for the NYAD above show the advancers falling as the new NYA price highs are achieved. This NYAD behavior says that the index buying is long in the tooth and that the broad markets should start selling off again.

Use this NYAD chart in concert with the NYA chart to compare the circled peaks and troughs. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.