After rocketing up to its highest level on record (at least 1990) on July 12th, the S&P 500’s 10-Day A/D line has quickly come back down to earth and is actually now slightly negative through midday Thursday.  For those unfamiliar with this indicator, the 10-Day A/D line measures the rolling net number (or percentage) of stocks in the S&P 500 that trade up on a given day (advancing stocks minus declining stocks).  Earlier this month, we published a B.I.G. Tips report (Premium and Institutional clients only) which highlighted how the S&P 500 has typically performed following prior extremely positive readings in the 10-Day A/D line.  In that report, we noted that over the very short term, the market’s returns were generally flat, which is exactly what we have seen over the last two weeks of consolidation.  Longer term, the report noted some pretty notable and consistent trends for the S&P 500.  To see those trends, check out the report.  Click here to start your no-obligation free Bespoke research trial now!

10 Day AD Line

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