Fewer new highs means there is less of an upward pull in trading.
A moderating advance/decline line also means a moving away from bullish sentiment.
Noted for May 19, 2013
2 hours ago
Wednesday, March 28, 2007
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The NYSE advance/decline line has been the most bullish signal around for months (as lots of other signs indicated weakness). Notice that the a/d line has continued to increase even after the Feb. 27 pullback.
The a/d line is actually overly sensitive to the downside, signalling the proverbial 9 of the last 5 recessions. It turned decisively lower in 1998, 2 years before the S&P high, and almost 3 years before the 2001 recession.
As you know, I think recession is close, but the a/d line is contrary to my analysis. It will be interesting to see if its long trendline is broken.
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