It’s Usually A Healthy Sign For Broad Markets
Chris Kimble | Feb 18, 2015 12:48PM ET
The above charts are two different ways to look at the Advance/Decline line on the NYSE.
The chart on the left is the norm, which includes “all issues” on the NYSE. It has, of course, been the most common way to look at the A/D line for years. Yet some have said that it's not a very good way to look at the A/D line because it includes closed-end bond funds.
The chart on the right takes a look at just “common stocks” in the NYSE. As you can see, the “All Issue” A/D line has been at all-time record levels for a long period of time. The “Common Stock Only” A/D line has been choppy since June of last year. At this time, it is attempting a breakout.
Using history as a guide, it's usually healthy for the broad markets when data like this makes a run at all-time highs.
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