NYAD NYSE Advance-Decline Daily Chart

NYAD is agreeable to a market bounce.  We first saw this in yesterday's trading, an intraday low printed -2500 which is consistent with where broad indexes turn back up for a bounce.  Sure, there is more space on the down side, but the markets should bounce to rectify this low number any time this week.

The dots along the bottom highlight significant lows in the NYA (a broad index), the dots across the top highlights significant highs in the NYA. A number around -2500 signifies that negativity has gotten to a feverish pitch, with everyone talking gloom, hence, the markets will bounce.  Convesely, the high +2500 number indicates euphoria, the wine is flowing like water, and the markets bulls are running, hence, they receive a slap down to give them a rest. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.