Economic Indicator A/D Line Weak, But Not Horrible

Includes: DIA, IVV, SPY
by: Bespoke Investment Group

With worries over the direction of the economy, Friday afternoon we updated our Economic Indicator Advance/Decline line. This indicator looks at more than 35 different indicators and tracks whether they come in stronger or weaker than expected over a 50-day rolling period.

As the chart illustrates, over the last several weeks, more indicators have been coming in weaker than expected. However, over the last two years it, hardly ranks as an extreme downside move.

click to enlarge