There are some potential warning signs in the breadth indicators. First, the Nasdaq AD Volume Line and the NYSE AD Volume Line both bounced, but remain well below their October highs. Lower highs could be forming. Second, October Net New Highs were above +200 for the Nasdaq and above +400 for the NYSE. So far in November, Net New Highs for the Nasdaq have yet to exceed +100 and Net New Highs for the NYSE stalled around +200. Fewer stocks participated in the November advance.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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