A/D Line Confirms Market’s Strength

11/08/2010 9:56 am EST


Thomas Aspray

, Professional Trader & Analyst

Click to Enlarge

The NYSE Advance/Decline (A/D) line, which tracks the cumulative reading of net advancing stocks minus declining stocks, closed at further new highs Friday, confirming the action in the major averages. The A/D line broke out to the upside on September 2 and has made a series of new highs over the past two months (see arrows). It is well above its uptrend. On a short-term basis, I would not be surprised to see a pullback as short covering likely contributed to Thursday’s upward surge, but a correction should be a buying opportunity.

Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on STRATEGIES

Keyword Image
MSG Networks: A Sporting Chance
12/12/2018 5:00 am EST

Validea is an advisory service which assesses stocks based on the investing criteria of many of the ...