A Sick Market | Stock Market Investing

Thursday, June 26, 2008 | Home | Andy Mayo



The top graph shows the NYSE Advance-Decline Line -- the number of stocks advancing in price minus those declining.  The bottom graph shows the NYSE High-Low Index -- the number of new highs in price recorded on the New York Stock Exchange minus the number of new lows.  Note the zero line in the lower graph.  Both indicators tell the same story:  The market has been sick since July 2007. 

When the High-Low index breaks out above its moving average, the advance decline line also moves up and, while I don't show the exchange price chart, trust me on this one, stock prices will also advance.  You can also see the depth to which the High-Low Index has to fall before we get a rally.  We have a way to go.

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