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A few weeks ago, I showed everyone how to use the cumulative advance/decline chart to read the breadth of the markets – the number of stocks moving higher or lower.
It's easy: The more stocks participating in the move up, the broader the breadth, and the healthier the broad markets are.
At the time, the breadth was robust, but it's been shrinking just a little over the past two weeks. Last week, in fact, I got in touch with my paid-up Stealth Profits Trader subscribers to let them know about an early divergence in the cumulative advance/decline line.
It's lessened over the past week or so, but it's still there.
Now, it'd be foolhardy to look at the divergence and panic, but it shouldn't go ignored, either.
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.