Breadth Remains Neutral as Market Hits New Highs

Breadth as measured by the 10-day advance/decline line (average daily number of advancers minus decliners in the S&P 500 over the last 10 days) remains in neutral territory even as the S&P 500 charged to new bull market highs yesterday. The 10-day A/D line is a widely followed indicator, and the fact that it remains neutral gives the market more room to run on the upside before reaching overbought territory again.

Most sectors remain neutral as well. Financials, Technology, and Materials are the three sectors that are just barely overbought, while the Utilities sector is the only one that is oversold.

Comments

[Alphameister:]

"The 10-day A/D line is a widely followed indicator, and the fact that it remains neutral gives the market more room to run on the upside before reaching overbought territory again."

Or it's the type of negative divergence that typically suggests a topping process.

Sep 12 08:46 AM