NYAD NYSE Advance-Decline Daily Chart

The NYAD printed an uber high +2226 intraday yesterday verifying the extreme bullish euphoria. Looking back at the four other uber highs recently, the first red circle on 5/21/12 led to a two-day drop from an intraday high to intraday low of 30 S&P handles. The second black circle on 5/29/12 led to a four day drop of 65 S&P handles.  The third purple circle early June led to a one-day intraday 20 handle drop then subsequently, a sideways consolidation range a few handles lower in the following three to four days.

The current red circle printed yesterday leads to ? The uber high reading should lead to a snap back move lower but as seen by the previous moves, this is intraday, VST type of moves, so to take advantage you have to be a quick trader. Large intraday spikes and drops will likely be the order of the day over the next couple days with a market down move needed of 20 handles or more, to use the previous three as a guide, to relieve the uber positivity. 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.