Moonray,
Here is an interesting take on the advance/decline line.
exchange2000.com
(interview dated Feb. 25 1999)
>>....Such as their emphasis on the advance-decline line? It seems like a lot of people follow this one indicator religiously.
O'Neil: We don't pay much attention to that because it gives many false signals. For example, in mid-November, it failed to break into new high ground when the S&P did, and it started declining then. Well, the big profits were made from mid-November to mid-January, so you would have missed that. And we've seen a lot of other markets where it's very premature and very wrong, so we disregard that indicator a lot. If you also look at what's going on in the market, you had a transition into big-cap quality leaders and out of the small-cap stocks. So it's natural that your advance-decline line would probably be a little bit sloppy because more than half of the stocks are low-grade, lower-priced stocks that were probably overplayed several years ago. And they're not going to participate so well. So we thought that was misread.....<<
RE: Breaking through the averages. If you look at the 3 month chart on Nasdaq you will see that the story is getting old (BTDT at least twice before), however, we are not clear through the woods yet this time and I will feel a lot better when we get back above 2500. Maybe SOX can kick some butt here and do that just for us :)
quote.yahoo.com^IXIC&d=3mm
Entre nous, there seem to be too many following TA now. I think we are going to see a lot more curve balls and it's going to get even tougher to read what's really going on. <G>
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