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Christopher Wallace
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Managing Director - CCC Investment Banking

  • AD Line Says New Highs Coming 2 comments
    Feb 12, 2014 10:15 AM

    Just when you thought this 59 month old bull market was finally coming to an end, it does a 180 degree turn and heads back up. Ms. Yellen's dovish stance and great numbers out of China are trumping weak jobs data. Is this a reaction bounce, soon to be followed by a resumed down-trend? or are we on our way back to new highs?

    Throughout this bull market, the Advance-Decline Line (AD Line) has been a great indicator. As long as it remains in its uptrend, the market will too.

    The AD Line has continually made higher highs, ultimately indicating new highs on the S&P 500. If we narrow the focus, and look at the chart below which shows a six month time frame, we can see that the AD Line has made a new high:

    That new high in the AD Line suggests a new high in the S&P is soon to follow. Don't count this market out until the AD Line makes a lower low. As long as that 54000 level is not breached, the AD Line says keep buying the dips.

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  • TruffelPig
    , contributor
    Comments (4206) | Send Message
     
    First line: replace bear by bull I think.
    12 Feb 2014, 10:18 AM Reply Like
  • Christopher Wallace
    , contributor
    Comments (1316) | Send Message
     
    Author’s reply » Whoooooooooooops! Freudian slip?? Thanks Truffle, I'll get that changed!
    12 Feb 2014, 10:23 AM Reply Like
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