A/D Line
For The Technicians
Examining some of the impacts that decimalization and the inclusion of financial derivatives may have on the NYSE Advance/Decline Line & ARMs Index.
Market Breadth Update
Based on the weekly Advance/Decline line, market breadth has improved considerably. This is evidence of a much stronger underlying stock market than the S&P 500 and other measures might indicate.
Market Breadth Update
Despite the market’s weakness in March, the breadth experienced some deterioration in the last half of the month.
Be A Buyer, Not A Seller
Stock selection in a recession is a different ball game! A look at some of the rules and the traps when investing during a recession. The Bullish Message Of Breadth: Demonstration of how divergences between the S&P 500 and the A/D Lines have denoted market tops and market strength.
Big Caps Hot Out Of The Starting Blocks
It’s no secret that the term “January Effect” has taken on a different meaning in recent years. Once a reference to the price bounce that underperforming small caps stocks receive as year end selling pressures dissipate, it has now been adopted by commentators to describe the unconstrained rally of large cap stocks, as the seasonal flood of cash pouring into big cap growth funds is invested
Is 1998 Like 1987?
Comparing 1987 versus 1997 and 1998 Advance/Decline lines: 1987’s actually didn’t look nearly as bad as today’s.
Octophobia? 1997 Is Not Like 1987 in Two Important Ways
Octophobia…but October 1997 is not at all like October 1987. In 1997, the Advance/Decline line has continued “in gear” with the S&P 500, whereas in 1987, the A/D line peaked out five months before August 1987’s peak.
View From the North Country
Is Warren Buffett doing some very significant selling? I think this might be the case. Leuthold Group three part series on deflation will be sent to clients in September and October. Also, the 10th Anniversary of 1987’s stock market peak: two important “then” and “now” comparisons.
What I Worry About
Today’s great bull market has broken most past behavioral guidelines and precedents. It’s a different animal and could terminate as most manias do...with little forewarning and a waterfall decline.
OCO Advance/Decline Line Update
This version of market breadth continues to present a more bearish picture than the other A/D measures.
For Technical Types
I have been employing market breadth data for 32 years, tracking and interpreting a number of variations of advance/decline calculations. Here are some of my conclusions about advance/decline studies.
Perception for the Professional
March 2026 Issue
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March 2026 Issue
