NYUD Advance-Decline Line and NYA NYSE Composite Daily Charts

The NYUD washes out to the downside with the decliners orders of magnitude higher than the advancers in the Friday trade. The green circles show market bottoms when the NYUD prints a low number indicating a wash-out in the negativity.

Note the -600 print from last Tuesday which is a wash-out signal then boom, stocks continued to flush lower printing an uber low NYUD. Stocks should bounce with at least a dead-cat bounce from these uber oversold levels.

One of Keystone's useful tools for the NYUD is the 63 EMA. Note the slope of the moving average over the last six months shown by the red line for a downward sloping ema and a green line for an upward-sloping. What do you see? Yes, the behavior in the NYUD 63 EMA on the daily chart verifies and forecasts the path ahead for the stock market. Bulls have a lot of work to do to right the ship. 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.