Wednesday, November 30, 2005

Advancing Issues

The chart you see above shows the daily count of the number of issues on the New York Stock Exchange which advance in price each day (in black) and the 10 day moving average of this number (red).

I last commented on the New York Stock Exchange advancing issues indicator here and here .

The interesting thing I see now is that while today the S&P futures made a new low for the reaction which started from the 1273 level, the number of advancing issues is much higher than it was on the first day of the break on Monday.

Given the very bullish condition of the market I'd say that this is a postive divergence and means that the S&P is about to start a rally to 1285 and higher.

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