The New York Stock Exchange Advance / Decline Line, or NYAD, is approaching an interesting juncture, as the NYSE (NYA) bounces back up to its recent breakdown.
For reference, the NYAD captures the net difference between advancing and declining issues, or a type of breadth measure. It is usually compared to a major index, where a divergence from that average would be an early indication of a possible trend reversal.
Applied to the current market, what we are looking to see is whether the NYAD confirms or diverges from a potential new price breakout, should the NYSE follow the Nasdaq Composite Index higher, in terms of gauging the sustainability of any further strength from here.
What are you trading this morning?
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following some NIHD tape ( if ever goes up )
YGE and TSL……….the shortage of photovoltaic panels makes these two strong candidates for a fast move .
I think its a great indicator to watch for confirmation, thanks for bringing it to our attention
how do i pull this up in stockcharts.com
NYAD
Very important indicator. This led me to buy puts on down in July among other things. If we go to new highs in this even I will not fight this indicator.