Tough to be a Bear with AD Line at All Time Highs

While price action remains near-term choppy and ranged bound, one market breadth indicator, the cumulative advance-decline line, continues quietly trending to all time highs.

Image 1 AD Line - Tough to be a Bear with AD Line at All Time Highs - The Trade Risk

Here’s a look at the S&P500 $SPY ETF over this same time period.

Image 2 SPY - Tough to be a Bear with AD Line at All Time Highs - The Trade Risk

Having the cumulative AD line out in front leading the broad averages while they consolidate is one of the most bullish formations it can be in.

Of course this doesn’t guarantee us an upside resolve, this is just one indicator and piece of data, amongst other mixed signals.

This just happens to be one of the brightest spots in a bull thesis.

If you’re not familiar with market breadth indicators, I just put together this educational article on how to apply them.

I’ll have more analysis in our usual weekend market recap video later today, enjoy the  weekend!


Enjoy what you read? Share it below and be sure to tag @thetraderisk.

Find similar content on the following:
Posted in , ,
Tagged with

Evan Medeiros

Evan is the founder of the Trade Risk. With 20+ years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

Don't miss out on more educational articles just like this!

Please enter your name.
Please enter a valid email address.
Something went wrong. Please check your entries and try again.

Leave a Comment