Using Market Internals to Time the Market

Since the March 2009 lows, I have frequently featured charts of the market internals as the Advance/Decline line, in particular, has been useful in staying on the right side of the trend. Whether you are trading the S&P futures, ETFs, or options that correlate with the US stock market, I think you will find that the A/D line can improve your market timing even if you are a very short-term trader. I follow the A/D line and up/down volume numbers throughout the market day and they are often very helpful in predicting how the market will close. There have been quite a few times when the market has been flat or up a bit going into the last hour, but the A/D numbers were positive by 2:1 or better. The result was often that the market surged into the close. Even for investors, staying with the trend of the A/D line should significantly improve your performance. READ FULL ARTICLE