still a bull market

Here are charts of my three main US stock market trend indicators: the Dow, the S&P 500, and the New York Stock Exchange advance-decline line. All three are above their rising 200 day moving averages (red lines). All three are above their rising 50 day moving averages (green lines). Until two of these three indicators drop below their 50 day moving averages I will continue to look for higher prices over the next few weeks. I think the S&P has a good shot at 1900.

The weakest of these three indicators is the advance-decline line. The AD line made its high on October 29 and since then has traded steadily lower. Among the three indicators it is the closest to its 50 day moving average. This is a classic divergence with bearish implications going forward because is suggests that the bull market advance is spread among fewer issues. But I don't think this divergence is a serious one yet.