The AD Volume Line for the Nasdaq broke its March trendline and formed a lower high in May. This indicator is a cumulative measure for the volume of advancing stocks less the volume of declining stocks. Notice that recent peaks and troughs in the Nasdaq coicided with peaks and troughs in this indicator (blue arrows). The AD Volume Line is now showing some weakness with a trendline break and lower high.
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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