We'll start with a chart of the advance-decline line for the NYSE. This study tracks the advancing vs. the declining tendency of all the stocks on the NYSE. The advance-decline line has retreated so far down that I'm afraid it has sealed the fate of this market. Even if the Dow embarks on a huge rally to new highs, we would have a bearish divergence between the Dow and the A-D line, almost a sure indication of a market that is topping out.
For me, the wonder is that the fading number of issues on the NYSE hasn't dragged the Dow down even further than it has already fallen.
The fact is that the Dow has been surprisingly resistant to decline. On the Dow's decline of a few days ago, the Dow closed at 15115. Today the Dow closed at a new low for the move -- bearish.
Gold -- The chart below has ... Log in or subscribe to continue reading.
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