Wednesday, June 06, 2007

Advancing Issues

Here is a chart of the daily count of the number of issues which advance in price on the New York Stock Exchange. The purple line is the 5 day moving average of this number. I last commented on this indicator here.

Notice that, so far anyway, today's number of advancing issues is the lowest seen since the big one day break in late February. Usually the market does not make its low on the same day as the lowest reading for advancing issues. So I think it likely that, after a brief rally, we shall see somewhat lower lows in the averages tomorrow or Friday accompanied by higher daily readings in this indicator. This would give us a minor bullish divergence and set the stage for a rally to new bull market highs.


Anonymous said...

so in short
we should buy and hold for the next 33 years ????

Anonymous said...

NYSE breadth numbers can be misleading.