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Strategies & Market Trends : SPY Advance - Decline data for 2014 through 2016 -- Ignore unavailable to you. Want to Upgrade?

To: rimshot who wrote (622)	8/28/2021 10:29:13 PM
From: rimshot	Read Replies (1) \| Respond to of 1118

for the "operating only companies" data subset within the NYSE total symbol set: * the daily chart steadily displays lower highs over the recent weeks & months by - 1. the net Advance-Decline daily value at the end of each day 2. the cumulative A-D line comprised of accumulating the daily values these two negative conditions could eventually be resolved to the upward direction, or accomplish the opposite & actually worsen and take out prior end-of-day lows for items 1 and 2 * for now, any evidence-based trader / investor who does not pay attention to this data is in the dark about one of many chart items which are more than a bit significant to the near-term and the medium-term price outcome for the US equity market

To: rimshot who wrote (622)

9/19/2021 1:27:09 PM

From: rimshot

Respond to of 1118

many technicians are aware that a cumulative net Advance - Decline line
reflects the actual amount of liquidity flowing in or out of the equity market

shown within this PermaLink is the 20-year history for the NYSE all-issues Advance - Decline line -

stockcharts.com

the July 19 NYSE A-D line pullback low was nearly matched by the mid-August 2021

pullback low, and represents a future priority vigilance level,
as are the A-D line peaks in early July & early September-

stockcharts.com

now relevant to today's Sept. 17, 2021 A-D line chart configurations: this detailed post by Mortiz
linked below from 2005 covers both topics:

1. when the A-D lines have topped and are currently declining,
OR
2. when the A-D lines are still advancing -

" This post examines the ramifications on index prices when
the NYSE cumulative AD line is in an uptrend, as well as after
the cumulative AD line has topped, and begins declining. "

forums.technicalwatch.com

===========================================================================

August 27, 2021 free Chart in Focus by Tom McClellan at McClellan Financial Publications website -

August 27, 2021

When last I wrote here about the NYSE Advance-Decline (A-D) Line in March 2021, there had just been a little divergence which had resolved itself by the A-D Line moving to a higher high. That’s one of the points about such divergences; they can be rehabiltated, and when they are that is a really bullish sign.

Now we are seeing another bearish divergence that has developed at the right end of the chart, and so far this one has not yet been rehabilitated. It still could be, but for the moment it is a problem for the market to have higher price highs that are still unconfirmed by the A-D Line. And this comes in tandem with last week’s article about a similar looking divergence in the behavior of the stocks that make up the Nasdaq 100 Index.

Watching the A-D Line is important because it can give us hints about problems with financial market liquidity ahead of those problems affecting the big cap stocks. Everyone knows that indices like the SP500 are dominated by a handful of really big capitalization stocks. But the smaller ones fight for liquidity in the same market, and they are often the first ones to suffer when liquidity starts to dry up.

It is the same principle as the canaries that used to be used in coal mines a couple of centuries ago. These small birds were more sensitive to the presence of toxic gases, and so if the canaries keeled over then the big burly coal miners needed to get themselves out of the mine before they succombed.

The first analysts to study the A-D data in depth were Leonard Ayres and James Hughes, of the Cleveland Trust Company. They wondered starting in 1926 what it meant to have more or fewer stocks going up or down each day, and so they started gathering the data. If only chartists could have known about the concept of an A-D Line divergence back in the late 1920s, perhaps there could have been better warnings ahead of the 1929 crash.

We saw A-D Line divergences that were important in the 2000s, although not as much as the 1929 example. At the big October 2007 price top, the A-D Line was already in a downtrend, having topped out 4 months before. That was a pretty ominous warning of trouble, and it was right.

In the current time frame, it is still possible that the A-D numbers could improve, and produce a rehabilitated divergence. That is possible, and I will be on the lookout for it. For now, though, it is giving us a big warning of trouble, saying that in spite of the Fed still buying $120 billion a month of bonds, liquidity is starting to dry up. Just imagine what will happen if/when the Fed starts its taper.

Tom McClellan
Editor, The McClellan Market Report
www.mcoscillator.com

Chart In Focus
A-D Line’s Troubling Divergence