NYAD NYSE Advance-Decline Weekly Chart

The advancers-decliners plummet yesterday to a multi-year low indicating that there was indiscriminant selling yesterday. The baby, the bath water and the kitchen sink were all thrown out the window. Decliners are off the chart and advancers are few creating the drastic drop to -2600. A NYAD above 2000 indicates a market top is coming soon while a sub 2000 number indicates a market bottom will be coming soon.

The prior stock market bottoms (signaled by green circles) all occurred from 1 to 4 weeks after the low NYAD print and leaning more to the 2 to 3 week range. Thus, a market bottom would be anticipated in mid to late August. In the meantime, markets will want to bounce off the low NYAD so a relief rally is expected but markets should pulse lower making new lows for several days and perhaps 1 to 3 weeks forward where the tradeable bottom should occur. 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.

Note Added Sunday, 8/3/14, 2:49 PM: The NYAD finishes at -794 for the week well off the intraweek low (Thursday) at -2600 above. Therefore, the intermediate stock market low may not occur in 1 to 4 weeks time and instead can occur far further in the future. The uber low print at -2600 on Thursday helped usher in the market strength early in the session Friday morning to relieve some of the strong bearish pressure. The bulls would have been far better off to receive the -2600 print on Friday to close out the week. Instead, equities may remain weak for weeks or months before the NYAD uber low print occurs again, and sticks, for the above chart.