Back to Advances and Declines

Today, during trading hours (see "High Advance/Decline Readings Post"), I have mentioned about extremely high advance decline readings on the S&P 500 and NYSE indexes. The indexes did not moved any more higher after that, yet they still had quite strong gain. The interesting thing is that even indexes had reported strong gain by the end of the day, the advance/decline readings were not any more strongly bullish at the market close. The advances topped declines on NYSE by a margin of 3 to 1 only. If during the trading session volume of advancing stocks in the S&P 500 sector was 40 times bigger than the volume of the declined stocks, then by the end of the day the ratio is 8 to 1 only.

Overall, we had today strong bullish trading only during the first hour after the opening Bell. The rest of the today's trading session the indexes were moving mostly side-way and even modestly declined. Because of this side-way action, many technical indicators on 5-min and 15-min charts suggest weak opening tomorrow. Some technical indicators on 30-min and hourly charts followed the morning up-move and turned bullish. Yet, the longer-term charts remain to be bearish.