Nasdaq’s A/D Volume Line for the Nasdaq Composite broke below the trendline from the start of the rally. This indicator also broke below the 50-day Moving Average for the second time this month. The 50-day moving average has been successfully tested in August, October and December (gray arrows).
Nasdaq A/D Volume Line
Source: Stockcharts
The trend line break and move below the 50-day EMA signal that volume in declining stocks is outpacing volume in advancing stocks. With more fuel powering declining stocks, traders should prepare for a correction or consolidation in the Nasdaq.
Random Items:
Wrongway Pundits Still Getting Paid
Foreign investors grab more U.S real estate
The truth about offshoring
The Hollow U.S. Army
There’s No Such Thing as Free HBO
Missing in Action: The U.S. aviation security system
Quote of the Day
“The man who follows the crowd will usually get no further than the crowd. The man who walks alone is likely to find himself in places no one has ever been.”
–Alan Ashley-Pitt
