Friday, July 07, 2006

Advancing Issues

Here is a daily line chart showing the number of issues traded on the New York Stock Exchange that advance in price. The red line is the 10 day moving average of this number. I last commented on this indicator here.

Today we have made a new low for the reaction that started from Monday's high at 1289.75. But note that the daily number of advances is higher than it was Tuesday which was the first day of the reaction. So far this is only a minor divergence but it does make me more confident that the market won't go much past 1265 before it turns upward once more.

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