NYAD Advance-Decline Issues Daily Chart

The red circles show the market bottoms and green circles show market tops. The NYAD directly correlates to the market direction (as compared to the TRIN or CPC which is an inverse indicator) since a lot of advancers correspond to a healthy bull rally and lots of decliners correspond to a bear sell off. The September market top was identified by the NYAD +1500 to +2000 area. The obscene print at +2660 yesterday, with a closing print at the +2500 is insanely bullish, a high print only seen on a multi-month and multi-year basis. It signals over the top bullish euphoria. Note the -1000 print late last week which identified a near-term bottom, then the markets spiked wildly higher on Monday and Wednesday.

Today a pull back is occurring down to -86 thus far.  The blue rectangles show a fractal in play currently so watch to see if the current action mimics the late July two-day Draghi rally (type TRIN into the search box above to reference the Arms Index for further study on the late July action).  The July action was a two-day 60 point bounce for the SPX which then gave back about 30 handles over the following four days so watch to see if this fractal behavior repeats for the current move.  The intraday NYAD numbers are important since extreme readings at +2000 and higher signal that market selling is needed to remedy the uber bullishness, and conversely, if -2000 and lower prints, a quickie market rally is needed to remedy the excessive bearishness. At +2500 and higher, the chart is signaling uber bullishness and a market top in place. 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.