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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
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.